When Padgett Properties LLC was formed, Nova contributed land (value of $282,000 and basis of $70,500) and $141,000 cash, and Oscar contributed cash of $423,000. Both partners received a 50% interest in partnership profits and capital.

a. How is the land recorded for § 704(b) book capital account purposes?
For § 704(b) book capital account purposes, Padgett records the land at $..................?
b. What is Padgett's tax basis in the land?$............?
c. If Padgett sells the land several years later for $423,000, how much tax gain will Nova and Oscar report?
Nova reports a $.............? gain and Oscar's gain is $................?

Answer rating: 100% (QA)

AF Fain Maker Value land is recanded a Fa 8 704b book Cap... View the full answer