Cosmo contributed land with a fair market value of $530,000 and a tax basis of $153,700 to the Y Mountain partnership in exchange for a
Cosmo contributed land with a fair market value of $530,000 and a tax basis of $153,700 to the Y Mountain partnership in exchange for a 25 percent profits and capital interest in the partnership. The land is secured by $188,000 of nonrecourse debt. Other than this nonrecourse debt, Y Mountain partnership does not have any debt. (Leave no answer blank. Enter zero if applicable.)
a. How much gain will Cosmo recognize from the contribution?
b. What is Cosmos tax basis in his partnership interest?
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Authors: Ray H. Garrison, Alan Webb, Theresa Libby
12th Canadian Edition
1260193276, 978-1260193275
