Jack and Julie are forming J&J Partnership. Jack contributes $250,000 cash and Julie contributes real estate...
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Jack and Julie are forming J&J Partnership. Jack contributes $250,000 cash and Julie contributes real estate with an adjusted basis of $180,000 and a fair market value of $300000. The real estate is subject to a $50,000 qualified nonrecourse liability (a mortgage). The liability is assumed by J&J and is shared equally by the partners for basis purposes. Jack and Julie share equally in ail partnership profits and losses except for any precontribution gains, which must be allocated according to the statutory rules for built-in gain allocations. 1. What is Jack's and Julie's adjusted tax basis for their partnership interest immediately after the partnership is formed? 2. If the partnership sells the land contributed by Julie for $330,000, what is the tax gain allocated to each partner? Jack and Julie are forming J&J Partnership. Jack contributes $250,000 cash and Julie contributes real estate with an adjusted basis of $180,000 and a fair market value of $300000. The real estate is subject to a $50,000 qualified nonrecourse liability (a mortgage). The liability is assumed by J&J and is shared equally by the partners for basis purposes. Jack and Julie share equally in ail partnership profits and losses except for any precontribution gains, which must be allocated according to the statutory rules for built-in gain allocations. 1. What is Jack's and Julie's adjusted tax basis for their partnership interest immediately after the partnership is formed? 2. If the partnership sells the land contributed by Julie for $330,000, what is the tax gain allocated to each partner?
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Related Book For
South Western Federal Taxation 2016 Corporations Partnerships Estates and Trusts
ISBN: 9781305399884
39th edition
Authors: James Boyd, William Hoffman, Raabe, David Maloney, Young
Posted Date:
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