Partnership interest sale with 1245 assets

[semophil]

Is the sale of the interest treated as a capital item or do you have to recover the 1245 depreciation recapture. Additional note, we are electing the section 754 on the purchase by the buyer of the interest.

This is not a complete sale of the interest only 98% of this partner interest.

[Luis Mopeo]

Is the sale of the interest treated as a capital item or do you have to recover the 1245 depreciation recapture. Additional note, we are electing the section 754 on the purchase by the buyer of the interest.

This is not a complete sale of the interest only 98% of this partner interest.

See TTB page 20-10, Payments for Unrealized Receivables and Inventory Items are treated as ordinary income. Unrealized receivables include gain that would be treated as ordinary income such as Section 1245 gain or Section 1250 property.

[veritas]

In the back of my mind

it seems to me that the partnership will complete a form disclosing the 1245 and ordinairy income items. Does anyone else recall?

[S T]

Any more info on this

Does anyone have anymore info on this post.

Sandy

[S T]

On Extension

Please, can someone help out here, I have a sale of partnership interest that does include some 1245 assets. So anything that I need to consider? One partner sold his interest back to an existing partner. Fortunately for me we are using a 1/2/06 date.

Otherwise I have partnership basis to use for calculation of gain/loss , right?

Sandy