Question

Character of his gain will be > short-term capital gain

Further explanation: Because Garrett purchased his partnership interest, his holding period for the interest begins on the date the interest was purchased. As a result, he only has a six month holding period before the partnership interest is sold. This means his capital gain from the sale of his partnership interest will be short-term capital gain.

Answer 1

The character of Garrett's gain from the sale of his partnership interest will be short-term capital gain.

Step-by-step explanation:

The subject of the question is Business. When an investor purchases a partnership interest and later sells it, the gain from the sale is called a capital gain. In this case, because Garrett purchased his partnership interest and sold it within six months, his capital gain will be considered short-term capital gain.

Example: Garrett buys a partnership interest for $2,000 and sells it for $2,500 after six months. His gain of $500 is considered a short-term capital gain.