Question
A contributes $100,000 cash to the AB partnership and B contributes a building with an adjusted basis of $50,000 and a fair market value of
A contributes $100,000 cash to the AB partnership and B contributes a building with an adjusted basis of $50,000 and a fair market value of $100,000. Unless otherwise stated, apply the traditional method with respect to all contributed property.
If the building is depreciable, has a 10-year remaining recovery period and is depreciated under the straight-line method, how much tax and book depreciation will be allocated to each partner?
Same as (a), above, except that Bs basis in the building is $60,000?
Same as (a), above, except that Bs basis in building is $40,000?
Same as (a), above, except that Bs basis in the building is $120,000?
If in (a), above, the building is sold for $90,000 after it has been held (and depreciated) by the partnership for two years, how must the partnership allocate the tax gain on the sale?
Same as (e), above except the building is sold for $60,000?
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