Jonathan owns property (basis of $200,000, value of $300,000). He plans to contribute the property to the

Question:

Jonathan owns property (basis of $200,000, value of $300,000). He plans to contribute the property to the JJG in exchange for a 25% interest.
a. What issues arise if the distributes $150,000 of cash to Jonathan three months after the property contribution?
b. How can the risk of adverse tax consequences be minimized?
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...