AB partnership has the following assets and liabilities at y

AB partnership has the following assets and liabilities at year end. The book basis and tax basis are the same amount. Assets are Machine with FMV of $18000 with basis of $10000, building with FMV of $100,000 and basis of $80,000. They have Note 1 Basis and FMV or $15,000 and Note 2 with basis and FMV of $90,000. Note 1 is recourse note attached to the machine: Note 2 is non-recourse note attached to the building. What is the amount of the partnership\'s minimum gain? A. 0 B. $3000 C. $10,000 or D. $15,000

Solution

B. $3000, is the amount of the partnership minimum.

Because the partners total gain is with basis of $90000, which can be divided into two or three, so $90000/3= 3000.