Brad, Otis, and Andrea form Teal Partnership with the following investment: Consideration Transferred From Brad- Land-capital asset
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Question:
Brad, Otis, and Andrea form Teal Partnership with the following investment:
Consideration Transferred
From Brad-
Land-capital asset | Basis to Transferor | Fair Market Value | Partnership Interest |
(held 9 months) | $ 10,000 | $ 200,000 | 25% |
Business liability From Otis- | 100,000 | 100,000 | |
Equipment(held 2 years) | 210,000 | 110,000 | 25% |
Business liability From Andrea- | 10,000 | 10,000 | |
Inventory (held 16 months) | 240,000 | 300,000 | |
Business liability | 100,000 | 100,000 | 50% |
All liabilities transferred by partners are assumed by Teal Partnership. Profits and losses are shared in accordance with their ownership interest.
- What, if any, is Brad's recognized gain or loss?
- What is Brad's basis in the Teal Partnership?
- What is Brad's holding period in his partnership interest?
- What is Teal Partnership's basis in the land?
- How much gain or loss must Otis recognize?
- What is Otis's basis in the Teal partnership?
- What is Teal Partnership's basis in the equipment?
- What is Otis's holding period in his partnership interest?
- What, if any, is Andrea's recognized gain or loss?
- What is Andrea's basis in the Teal Partnership?
What is Andrea's holding period in her partnership interest?
Related Book For
Federal Taxation 2016 Comprehensive
ISBN: 9780134104379
29th edition
Authors: Thomas R. Pope, Timothy J. Rupert, Kenneth E. Anderson
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