A and B form general partnership AB that is not an LLP. A contributes real property with
Fantastic news! We've Found the answer you've been seeking!
Question:
A and B form general partnership AB that is not an LLP. A contributes real property with a fair market value of $100,000 subject to a non-recourse mortgage of $60,000, in exchange for an 80% interest in the partnership. The basis of the contributed property is $20,000. B contributes $10,000 in exchange for a 20% partnership interest. Assume there is a state law assumption of the mortgage by the partnership.
a. What are A's and B's bases for their partnership interests immediately following the formation of the partnership?
b. Does A recognize and gain upon the contribution of the property?
Related Book For
Fundamentals of Taxation 2015
ISBN: 9781259293092
8th edition
Authors: Ana Cruz, Michael Deschamps, Frederick Niswander, Debra Prendergast, Dan Schisler, Jinhee Trone
Posted Date: