Partnership question

[MN dhawk]

Partnership has one commercial rental building. Partners A&B split everything 50/50. A buys out B's partnership interest on 12/31/09. A sells the building in 2010.

I'm thinking that B only has to show a capital gain on schedule D for his partnership interest sale, that A will do the same since the partnership dissolved in 2009.

For 2010, A should deal with all the recaptured depreciation on the sale of the building.

Am I on the right track? Thanks for any comments.

Dennis

[jainen]

>>A will do the same<<

Presumably B got some 2009 gain out of the deal, but it seems me that A did not have a taxable event in taking the distribution of property while dissolving the partnership. In my experience, however, nothing is what it seems. At least, what it seems to me--I invariably get everything wrong at first glance. In the original post, I would not sign a tax return until I had examined the partnership agreement and buyout and the real estate escrow, looking closely at how assets were titled and who was responsible for what and so on.