Sale of Partnerships

[VondenHogenBeaverHausen]

A taxpayer sold her partnerships for several hundred thousdand dollars. There is some basis.

Can this go on schedule D long term cap gains or is there another procedure for this? Please share any tips.

[Bees Knees]

TTB, page 20-9, "The sale or exchange of a partner's interest in a partnership generally results in capital gain or loss. However, see payments for unrealized receivables and inventory items on page 20-10."

To summarize those rules, there are situations where the gain on the sale of a partnership interest gets divided into long term capital gain, oridinary income, 25% rate gain, 28% rate gain, etc. I suggest reading those pages to see if any apply in your situation.