Kira buys a 40% partnership interest from Flash for $100,000. Flash's outside basis in the partnership was $60,000 at the time of sale, and Flash's share of the inside basis of the assets in the partnership (his tax capital account) was $40,000. The partnership has $20,000 of debt. What is Kira's outside basis in the partnership interest? a. $48,000 b. $100,000 c. $108,000 d. $40,000
Kira buys a 40% partnership interest from Flash for $100,000. Flash's outside basis in the partnership was $60,000 at the time of sale, and Flash's share of the inside basis of the assets in the partnership (his tax capital account) was $40,000. The partnership has $20,000 of debt. What is Kira's outside basis in the partnership interest? a. $48,000 b. $100,000 c. $108,000 d. $40,000
Chapter4: Gross Income: Concepts And Inclusions
Section: Chapter Questions
Problem 12DQ
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Transcribed Image Text:Kira buys a 40% partnership interest from Flash for $100,000. Flash's outside basis in the partnership
was $60,000 at the time of sale, and Flash's share of the inside basis of the assets in the partnership (his
tax capital account) was $40,000. The partnership has $20,000 of debt. What is Kira's outside basis in
the partnership interest?
a. $48,000
b. $100,000
c. $108,000
d. $40,000
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