Sale of a Partnership Interest
Disposition of Partnership Interests
Partners may sell or otherwise dispose of their partnership interests. Gain or loss generally depends on the amount realized and the partner's outside basis, although certain assets receive special tax treatment.
- Determine amount realized.
- Calculate outside basis.
- Compute gain or loss.
- Consider ordinary income exceptions for certain partnership assets.
Tip
Questions involving partnership interest sales often combine basis adjustments and gain calculations.
Summary
Selling a partnership interest generally requires careful basis computation before determining taxable gain or loss.