Unformatted text preview: $ 1,000 + Debt relief 14,100 Amount realized 15,100 Basis in partnership interest (6,100) Recognized gain 9,000 The recognized gain increased Mr. Cheney’s at-risk amount to $9,000, thereby allowing him to deduct his $8,000 suspended loss under the at-risk limitation. The recognized gain $9,000 is reduced by the suspended loss $8,000. Mr. Cheney reports a realized gain of $1,000. This is not a coincidence; usually the difference between the partner’s basis & at risk amount is the partner’s share of nonrecourse debt. Therefore, the gain recognized must be at least as much as the excess of nonrecourse debt over basis....
View Full Document
- Spring '09
- Finance, Partnership Accounting, Nonrecourse debt, Mr. Cheney