The Walford Partnership (Owned by Two Individuals) Sold an Apartment

The Walford Partnership (owned by two individuals) sold an apartment building for $300,000 that it purchased for $280,000 ten years ago.The partnership took $80,000 of depreciation deductions on the building.What is the amount and type of gain realized by the partnership on the sale and taxed to the individual partners?

A) $16,000 Section 1250 unrecaptured gain; $84,000 Section 1231 gain
B) $80,000 Section 1245 recapture; $20,000 Section 1231 gain
C) $80,000 Section 1250 unrecaptured gain; $20,000 Section 1231 gain
D) $100,000 Section 1231 gain

Correct Answer:

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Access For Free