ABC, an equal three-person cash basis partnership, has cash of $3,000 and securities of $48,000 (FMV) with an adjusted basis of $30,000 to the partnership. Assume that C sells her interest to D for $17,000. If the new partnership subsequently sells the securities at their FMV of $48,000, what must partner B include in taxable income if a Section 754 election is in effect?
The answer is A Reason Partner B is stepped to $48,000 (FMV), due to the 754 Election. If the new... View the full answer
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- Apr 04, 2018 at 4:52pm