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Business, 20.12.2019 00:31 percent74

Paul sells one parcel of land (basis of $100,000) for its fair market value of $160,000 to a partnership in which he owns a 60% capital interest. paul held the land for investment purposes. the partnership is in the real estate development business, and will build residential housing (for sale to customers) on the land (the land is inventory to the partnership). paul will recognize:

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Paul sells one parcel of land (basis of $100,000) for its fair market value of $160,000 to a partner...

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