1. a, b, and c agree to form a real estate investment partnership. they decide to form an equal, cash-method, general partnership, with each contributing property worth $300,000. A contributes cash in that amount; B contributes raw land purchased for $100,000 and held for two years; C contributes publicly traded stock purchased for $400,000 and held for six months. The parties anticipate a serious exploration of the real estate market and will either hold the real estate and any subsequently acquired real estate for appreciation or will construct an apartment building for rental purposes.

a. what gain or loss is recognized by each partner as a result of these contributions?

b. what is the tax basis of each partner's interest in the partnership?

c. what is the partnership's basis in each asset?

d. what is each partner's holding period for his partnership interest?

e. what is the partnership's holding period for its assets?

2. same as 1. above, expect that, two years after formation of the partnership, D acquires an interest in the partnership in exchange for contributing a parcel of land that adjoins the partnership's original property. D purchased this parcel for $200,000, and it is worth $400,000 at the time of contribution. At that time, the partnership's original land has appreciated in value to $500,000, the stock contributed by C has recovered to $400,000 in value, and the partnership continues to hold $300,000 in cash as its only other asset.

a. what is D's percentage interest in the partnership?

b. what gain or loss is recognized by D as a result of her contribution?

c. what gain or loss is recognized by the other partners as a result of D's contribution?

3. same as 1. above, except that B contributes publicly traded stock rather than land

a. what gain or loss is recognized by each partner as a result of these contributions?

b. what is the tax basis of each partner's interest in the partnership?

c. what is the partnership's basis in each asset?

d. what is each partner's holding period for his partnership interest?

e. what is the partnership's holding period for its assets?