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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. Cheneys 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 partners basis & at risk amount is the partners share of nonrecourse debt. Therefore, the gain recognized must be at least as much as the excess of nonrecourse debt over basis....
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This note was uploaded on 03/03/2010 for the course ACG 6845 taught by Professor Kelliher during the Spring '09 term at University of Central Florida.
- Spring '09