A. What basis will Stacey take in her partnership interest?

B. How much gain, if any, mush Stacey recognize on the formation of the partnership?

C. what basis will Steve take in his partnership interest is Staceys debt is nonrecourse debt instead of recourse debt?

On June 1, 2019, Steve and Stacey form the SS limited partnership. The initial contribution of each and their percentage interests for profits and losses in the partnership are as follows: Partner Property Interest Prof % Loss% Basis to Contributor Fair Mkt Value Steve -L Cash 30% 60% 400,000 $400,000 70% 40% 200,000 1,000,000 Stacey-G Land (Subject to a recourse mortgage) (500,000) Net Assets $600,000 $ 900.000 100% 100% - Steve contributed $400.000 for a limited partnership interest. Stacey is the general partner. - Stacey contributed Land with a FMV of $1.000.000:subject to a recourse mortgage of $500.000. The land had a basis of $200.000