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

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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?


Definitions:

Hematuria

The presence of blood in the urine, which can be a sign of various conditions affecting the urinary tract or kidneys.

Urge to Void

The feeling of needing to urinate.

In-dwelling Catheter

A catheter that remains inserted in the urinary bladder for continuous urine drainage over a period of time.

Drainage Bag

A medical device used to collect fluids that drain from a patient's body, commonly used after surgery.

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