Partnership KBCD owns a building with a tax basis of $1,300,000 and a book value of $2,000,000.

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Partnership KBCD owns a building with a tax basis of $1,300,000 and a book value of $2,000,000. The building (which was contributed to the partnership by a partner) is encumbered by a nonrecourse mortgage of $2,225,000.

a. What is the Code Sec. 704(b) minimum gain (if any) with respect to this property?

b. What is the Code Sec. 704(c) minimum gain (if any) with respect to this property?

Related Book For answer-question

Federal Taxation 2016 Comprehensive

ISBN: 9780134104379

29th edition

Authors: Thomas R. Pope, Timothy J. Rupert, Kenneth E. Anderson

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Posted Date: Feb 26, 2019 01:28 AM

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Partnership KBCD owns a building with a tax basis of $1,300,000 and a book value of $2,000,000.

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Book Value of the building 2000000 Its Tax basis 1300000 NonRecourse Mor... View the full answer

Federal Taxation 2016 Comprehensive

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