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At the time of the contribution, a partner who contributes appreciated property in exchange for a partnership interest, will generally be responsible for tax
At the time of the contribution, a partner who contributes appreciated property in exchange for a partnership interest, will generally be responsible for tax on the contribution based on the: Adjusted basis of the contributed property. Fair market value (FMV) of the contributed property. Difference in the FMV over the adjusted basis at the time of the contribution. Partner will not be responsible for any tax.
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