Question $13$

$4$ pts

Section $721$ provides that no gain $($income$)$ or loss is recognized on a contribution of property to a partnership in exchange for an interest in the partnership. In which of the following transactions will gain or loss be recognized?

If a taxpayer contributes a tractor worth $$100,000$ and the basis is $$500,000$ in exchange for a partnership interest.

If a taxpayer contributes a building worth $$1,000,000$ and the basis is $$500,000$ in exchange for a partnership interest.

If a taxpayer contributes $$300,000$ cash in exchange for a partnership interest.

If a taxpayer provides services to a partnership in return for a partne ship interest.

None of the above are taxable exchanges.