Irene contributes land to Micro Development Partnership for a 30% interest. The land's basis is $20,000, and

Question:

Irene contributes land to Micro Development for a 30% interest. The land's basis is $20,000, and it has a fair market value of $80,000. Micro reports a net operating loss of $100,000 for the year. Irene devotes at least 12 hours a week to managing the operations.
Identify the tax issue(s) posed by the facts presented. Determine the possible tax consequences of each issue that you identify.

Partnership
A legal form of business operation between two or more individuals who share management and profits. A Written agreement between two or more individuals who join as partners to form and carry on a for-profit business. Among other things, it states...