Maria is a 25 partner in anton partners anton has the

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9. Maria is a 25% partner in Anton Partners. Anton has the following balance sheets: Basis FMV Cash $60,000 $60,000 Bonds, stocks, other investments $27,000 $54,000 Investment in Breakout Partnership 145,000 270,000 $232,000 $384,000 Capital, Maria $ 58,000 $96,000 Capital, Other Partners 174,000 288,000 $232,000 $384,000 Anton has a 15% interest in the profits, losses and capital of Breakout Partnership. Breakout Partnership’s balance sheets are as follows: ©2015 CCH Incorporated. All Rights Reserved.
Practical Guide to Partnerships and LLCs—Instructor’s Guide Solutions 10
a. If Maria sells her interest in Anton Partnership to an unrelated buyer for $96,000, how much gain will she recognize?
b. What will be the character of Maria’s gain on the sale?
10. Assume in question 9 above that the lower tier partnership (Breakout Partners) also owned collectibles that had appreciated in value by a substantial amount. Would the 28% maximum rate on collectibles gain be applicable to any portion of Maria’s gain from sale of her interest in the upper tier partnership (Anton Partnership)?
©2015 CCH Incorporated. All Rights Reserved.
Practical Guide to Partnerships and LLCs—Instructor’s Guide Solutions 11

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