USA Sell Partnership

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I have a situation where we are trying to sell a partnership interest to the other 50% owner. The selling partner has a zero basis on his k-1 but has debt basis of say $100,000 which is recourse debt. The buying partner has offered say 5,000 for the partnership interest and will assume the recourse debt. My question is does the debt basis stay in place, even though it it being assumed by the buying partner. example

Cash 5,000
Assumed debt 100,000

Total proceeds 105,000
Debt basis -100,000

gain on sale 5000


or

Cash 5,000
Assumed debt 100,000

Total proceeds 105,000
Debt basis 0

gain on sale 105,000
 

Drmdcpa

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The gain should be 5k. The selling partner is recieving 105k (5k in cash and 100k in debt relief); basis is 100k of recourse debt.
 

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