Rod Owns a 65% Interest in the RRR Partnership, a General

question 15

Essay

Rod owns a 65% interest in the RRR Partnership, a general partnership, which he sells to the two remaining partners - Roger and Regis. The three partners have agreed that Rod will receive $160,000 in cash from the sale. Rod's basis in the partnership interest before the sale is $125,000, which includes his $35,000 share of partnership recourse liabilities. The partnership has assets with a $310,000 FMV and a $210,000 adjusted basis. What issues should Rod, Roger, and Regis consider before this sale takes place?

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The presidential terms of Jimmy Carter (1977-1981) and Ronald Reagan (1981-1989), notable for distinct economic and foreign policies.

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