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safezone safezone
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7 years ago
Sean, Penelope, and Juan formed the SPJ partnership by each contributing assets with a basis and fair market value of $200,000. In the following year, Penelope sold her one-third interest to Pedro for $225,000. At the time of the sale, the SPJ partnership had the following balance sheet:

   Basis   FMV
Cash   $200,000   $200,000
Land   $400,000   $475,000
   $600,000   $675,000

Shortly after Pedro became a partner, SPJ sold the land for $475,000. What are the tax consequences of the sale to Pedro and the partnership (1) assuming there is no Section 754 election in place, and (2) assuming the partnership has a valid Section 754 election?
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Prentice Hall's Federal Taxation 2014 Corporations, Partnerships, Estates & Trusts

Prentice Hall's Federal Taxation 2014 Corporations, Partnerships, Estates & Trusts


Edition: 27th
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RimounRimoun
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7 years ago
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safezone Author
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7 years ago
Good timing, thanks!
lipop
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Yesterday
this is exactly what I needed
homework1
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2 hours ago
Thanks for your help!!
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