1.Joy is a 30 percent partner in the JOM Partnership when she sells her entire interest to Hope for $95,000 cash. At the time of the sale, Joy’s basis in JOM is $61,250 (which includes her $11,750 share of JOM liabilities). JOM does not have any hot assets. What isJoy’s gain or loss on the sale of her interest?
Gains $45,500
2.Coy and Matt are equal partners in the Matcoy Partnership. Each partner has a basis in his partnership interest of $37,500 at the end of the current year, prior to any distribution.
On December 31, each receives an operating distribution. Coy receives $15,700 cash. Matt receives $4,615 cash and a parcel of land with a $11,085 fair market value and a $5,900 basis to the partnership. Matcoy has no debt or hot assets.
a.What is Coy’s recognized gain or loss? What is the character of any gain or loss?Neither gain nor loss recognized
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