"Craig" <jcstone1[at]comcast.net> wrote:

- quote -

A partner in a partnership cannot have a negative basis. He
either has basis or he does not. A partner also cannot do a
1031 on his partnership interest, as a partnership interest
is not property used in a trade or business or property held
for investment. So right there, I REALLY don't know where
you're going with this. To the extent any property received
exceeds the partner's basis, income will be recognized, the
character of which depends on what is received.

If you are a tax professional, it appears you are way over
your head. If you are not a tax professional, it is in your
best interests to get one yesterday.

--
David M. Woods, EA, ChFC, CLU
Woods Financial Services
Norwood, MA 02062
www.woods-financial.com

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2005) - All rights reserved. > << ================================================== ===== >

Partnership is terminating. Partner has ($137,000) negative basis (as
appears on K-1). Partnership has held depreciable commercial rental
property since 1980. In the year of sale and termination the partner's
share will be a depreciation recovery--$207,000, capital gain--$162,000,
cash--$177,000. What are the tax implications if he takes cash or
elects (which is available) a 1031 exchange?

Thanks,
Craig

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2005) - All rights reserved. > << ================================================== ===== >