artnership is owned 25% each by A, his wife, his wife’s father and X Corporation, in which A is a 50% shareholder. What are the tax consequences to the parties involved in the following sales? (a) During the year the partnership sells A some land in which it has a basis of $50,000 for its fair market value of $40,000. In the succeeding year, A sells the land to B for $45,000. (b) Same as (a), above, except that the first sale is to a second partnership also owned by the same parties except that an unrelated party owns a 25% interest and X Corporation owns no interest in the second partnership. The second partnership then resells the land to B for $45,000. (c) A sells depreciable equipment in which he has an adjusted basis of $20,000 to the partnership for $30,000. (d) A’s wife sells residential rental property held by her as a capital asset to the partnership for $120,000. She had a $100,000 basis in the property. The partnership is in the housing rental business. (e) Same as (d), above, except that the partnership is in the real estate sales business.
(a) During the year the partnership sells A some land in which it has a basis of $50,000 for its fair market value of $40,000. In the succeeding year, A sells the land to B for $45,000.
(b) Same as (a), above, except that the first sale is to a second partnership also owned by the same parties except that an unrelated party owns a 25% interest and X Corporation owns no interest in the second partnership. The second partnership then resells the land to B for $45,000.
(c) A sells
(d) A’s wife sells residential rental property held by her as a capital asset to the partnership for $120,000. She had a $100,000 basis in the property. The partnership is in the housing rental business.
(e) Same as (d), above, except that the partnership is in the real estate sales business.
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