Taxpayer sells 50% of his holding in a publicly traded partnership. What is the correct method for handling this on the tax return?
Specifically, do I treat this like an "ordinary" partnership where the sales proceeds are a return of capital to the extent there is tax basis and gain for any excess? Or, do I treat it similarly to a full liquidation of a PTP interest - ie., complete the sales schedule provided by the PTP allocating the gain to capital and ordinary income?
Ira Smilovitz