AB Partnership has the following assets and liabilities at year end. The book basis and tax basis are the same amount.
Machine: Basis $10,000 Value $13,000
Building: Basis $80,000 Value $100,000
Note 1: Basis $15,000 Value $15,000
Note 2: Basis $90,000 Value $90,000
Note 1 is a nonrecourse note attached to the machine. Note 2 is a recourse note attached to the building. What is the amount of the partnership's minimum gain?
$15,000 get a partnership minimum gain (the excess if any of non recourse debt over the book value of... View the full answer
- minimum gain equals the difference between the nonrecourse debt principal and the book basis(not tax basis) of the property securing the debt)
- Apr 05, 2018 at 12:48am
- Thank you
- Apr 05, 2018 at 12:55am