Subject: Determination of Tax Benefit to Helen and Hank
Summary of Facts:
The partnership placed Asset 1 (seven-year property) in service in 2015 and Asset 2 (five year property) in service in 2016. The partnership did not elect Sec. 179 expensing and elected out of bonus depreciation in both years. Accordingly, the assets adjusted basis was computed on December 31, 2017 per previously reviewed supplemental documents.
In addition, On December 31, 2017, Helen sold her partnership interest to Hank for $190,000. At the time of sale, the partnership had a Sec. 754 optional basis election in effect but has not elected to use the remedial method for allocating partnership items.
Issue to be addressed:
The partners have requested a determination be made on:(1) The amount and character of Helen’s gain or loss;(2) Hank’s optional basis https://www.solvedcollegepapers.com/product/acct-310-81-acct310-81-acctme
https://www.solvedcollegepapers.com/product/acct-310-81-acct310-81-acct5h
