assignment 7

Mary and Todd form the MT Partnership with a transfer of the following properties Mary $1,200,000 cash Todd $1,200,000 FMV property $800,000 tax basis Mary will receive 50% and Todd 50% of the membership interests in the partnership UNDER THE DEBT SHARING PROVISIONS OF SECTION 752, BOTH TODD AND MARY WILL HAVE A 50% INTEREST IN THE PARTNERSHIP DEBT FOLLOWING FORMATION. Complete the following Marx Todd Realized gain Recognized gain Basis of Interest MT basis in contributed asset VARIATION 1: return to original facts (same basis). Todd's property is valued at $1,600,000 but is contributed subject to a $400,000 liability. The members again share this liability 50% each under Section 752 Complete the following Mary Todd Realized gain Recognized gain Basis of interest MT basis in contributed asset VARIATION 2: Same as Variation 1 (same basis) except Todd's property is valued at 2.200,000 and is contributed subject to a liability of $900,000. The members again share this liability 50 each under Section 752 Complete the following Mary Todd Realized gain Recognized gain |||| Basis of interest MT basis in contributed asset