Question

What will be the character of Garrett's gain from the sale of his partnership interest?

1) Long-term capital gain
2) Short-term capital gain
3) Cannot be determined
4) None of the above

Answer 1

Garrett's gain from the sale of his partnership interest will be a long-term capital gain.

Step-by-step explanation:

The character of Garrett's gain from the sale of his partnership interest would depend on the holding period of the partnership interest. If Garrett held the partnership interest for more than one year before selling, the gain would be classified as a long-term capital gain. On the other hand, if Garrett held the partnership interest for one year or less, the gain would be classified as a short-term capital gain. Therefore, the correct answer is 1) Long-term capital gain.