Joan Is a 30% Partner in the OJT Partnership When

question 4

Essay

Joan is a 30% partner in the OJT Partnership when she sells her entire interest to Crissy for $100,000 cash. At the time of the sale, Joan's basis in OJT is $63,000 (which includes her $10,000 share of OJT liabilities). OJT does not have any hot assets. What is the amount and character of Joan's gain or loss on the sale?

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Definitions:

Blade

A thin, flat edge or surface used for cutting or shaping materials, found in tools such as knives, swords, and blades of grass.

Neolithic Transition

The period marking the shift from hunting and gathering communities to agricultural and settlement societies, bringing about significant changes in human lifestyle and culture.

Mammoths

Extinct large mammals closely related to modern elephants, lived in various parts of the world during the Ice Age, known for their long tusks and woolly coats.