Question: When Padgett Properties LLC was formed Nova contributed land value

When Padgett Properties LLC was formed, Nova contributed land (value of $200,000 and basis of $50,000) and $100,000 cash, and Oscar contributed cash of $300,000. Both partners received a 50% interest in partnership profits and capital.
a. How is the land recorded for ยง 704(b) book capital account purposes?
b. What is Padgett's tax basis in the land?
c. If Padgett sells the land several years later for $300,000, how much tax gain will Nova and Oscar report?

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  • CreatedSeptember 09, 2015
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