A B and C form a general partnership. A contributes Land, a capital asset A acquired several
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A B and C form a general partnership. A contributes Land, a capital asset A acquired several years ago, worth $160 in which A has a tax basis of $40. The land is subject to a mortgage of $60.
Liabilities of the partnership are allocated to the partners on a pro-rata basis (i.e., 1/3 to each partner). However, the partnership agreement does not include a DRO or a QIO. Accordingly, A has no obligation to restore a deficit to their capital account in determining whether partnership allocations comply with Sec. 704(b) of the IRC.
Immediately after the partnership's formation, what is A' tax capital account?
Related Book For
Physics for Scientists and Engineers A Strategic Approach with Modern Physics
ISBN: 978-0133942651
4th edition
Authors: Randall D. Knight
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