Mary and Todd form the MT LLC$,$ taxed as a partnership, with a transfer of the following properties:

Mary $$900,000$ cash

Todd $$900,000$ FMV property

$$600,000$ tax basis

Mary will receive $50\%$ and Todd $50\%$ of the interests in the partnership.

Complete the following

Mary Todd

Realized gain $\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_$

Recognized gain $\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_$

Basis of Partnership interest $\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_$

MT basis in contributed asset $\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_$

VARIATION $1$: Return to original facts $($same basis$).$ Todd$$s property is valued at $$1,300,000$ but is

contributed subject to a $$400,000$ liability. $($This means that Todd still contributes equity of $$900,000$ so

it is still a $50/50$ split of ownership$).$ The liability will be shared $50\%$ each under the rules of Section $752.$

Complete the following

Mary Todd

Realized gain $\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_$

Recognized gain $\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_$

Basis of partnership interest $\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_$

MT basis in contributed asset $\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_$

VARIATION $2$: Same as Variation $1($same basis$)$ except Todd$$s property is valued at $$1,700,000$ and is

contributed subject to a liability of $$800,000.($Again Todd contributes $$900,000$ of equity$).$ Again, each

partner$$s share of the liability will be $50\%$

Complete the following

Mary Todd

Realized gain $\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_$

Recognized gain $\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_$

Basis of partnership interest $\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_$

MT basis in contributed asset $\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_$