Dastan transfers land with a fair market value of $125,000 (basis of $50,000) and cash of $50,000 in exchange for a 40% interest in a
Dastan transfers land with a fair market value of $125,000 (basis of $50,000) and cash of $50,000 in exchange for a 40% interest in a partnership. Amy owns the other 60%.
a. How much are Dastans realized and recognized gains?
b. What is Dastans basis in the partnership?
c. What is the partnerships basis in the land?
d. Three years after the contribution, the partnership sells the land for $165,000. What is the recognized gain for the partnership and how is it allocated to the partners?
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Authors: John Price, M. David Haddock, Michael Farina
14th edition
978-1259284861, 1259284867, 77862392, 978-0077862398
