Sidney Crosby and Bill Guerin are forming the Guersby Partnership. They are 50/50 partners. Sid contributes land (FMV 400,000, AB 200,000). Bill contributes land (FMV 400,000, AB 50,000, mortgage 80,000).

(a) What is Sid's beginning basis in his partnership interest?

(b) What is Bill's beginning basis in his partnership interest?

(c) What is Bill's ending basis in his partnership interest if Guersby has the following income, expenses and distributions for the year?

Operating income 80,000

Charitable contribution 8,000

Distribution to Bill 10,000

Answer rating: 100% (QA)

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