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    Partnership question

    Partnership has one commercial rental building. Partners A&B split everything 50/50. A buys out B's partnership interest on 12/31/09. A sells the building in 2010.

    I'm thinking that B only has to show a capital gain on schedule D for his partnership interest sale, that A will do the same since the partnership dissolved in 2009.

    For 2010, A should deal with all the recaptured depreciation on the sale of the building.

    Am I on the right track? Thanks for any comments.

    Dennis

    #2
    No. Some of the selling partner's gain may be §1250 gain. See Regs. §1.1(h)-1
    Roland Slugg
    "I do what I can."

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