Dirk transferred depreciable property to the Frank Partnership for a one half interest in the partnership The property had an adjusted basis of $42,000 and a FMV of $56,000 The property was subject to a $14,000 mortgage which was assumed by the partnership What is the partnerships basis for determining depreciation on the property $28,000 $35,000 $42,000 $56,000 On January 1, 2019, Caryns basis in the Group V Partnership was $13,000 During 2019, she received a current distribution of $17,000 cash and land with a basis of $3,000 and a FMV of $5,000 Assuming the distribution is proportionate, what are the amount and character of the gain or loss Caryn should recognize from this transaction $9,000 capital gain $7,000 capital gain $4,000 capital gain $0 gain or loss Skipper owned a 60 interest in the Gilligan Partnership throughout 2019 On January 15, 2019, Skipper sold to the partnership a piece of land with a basis to him of $18,000 for its FMV of $42,000 Skipper held the land as an investment The partnership will hold the land as inventory in its real estate development business How much gain should Skipper report as a result of the transaction $14,400 long term capital gain $14,400 ordinary income $24,000 long term capital gain $24,000 ordinary income Section 721 provides that no gain or loss is recognized on contribution of property in exchange for an interest in a partnership This is true as long as the contributing partners own at least 80 of the partnership following the exchange True False

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________ Dirk transferred depreciable property to the Frank Partnership for a one-half interest in the partnership. The property had an adjusted basis of $42,000 and

________ Dirk transferred depreciable property to the Frank Partnership for a one-half interest in the partnership. The property had an adjusted basis of $42,000 and a FMV of $56,000. The property was subject to a $14,000 mortgage which was assumed by the partnership. What is the partnerships basis for determining depreciation on the property?

$28,000.
$35,000.
$42,000.
$56,000.

________ On January 1, 2019, Caryns basis in the Group V Partnership was $13,000. During 2019, she received a current distribution of $17,000 cash and land with a basis of $3,000 and a FMV of $5,000. Assuming the distribution is proportionate, what are the amount and character of the gain or loss Caryn should recognize from this transaction?

$9,000 capital gain.
$7,000 capital gain.
$4,000 capital gain.
$0 gain or loss.

Skipper owned a 60% interest in the Gilligan Partnership throughout 2019. On January 15, 2019, Skipper sold to the partnership a piece of land with a basis to him of $18,000 for its FMV of $42,000. Skipper held the land as an investment. The partnership will hold the land as inventory in its real estate development business. How much gain should Skipper report as a result of the transaction?

$14,400 long-term capital gain.
$14,400 ordinary income.
$24,000 long-term capital gain.
$24,000 ordinary income.

Section 721 provides that no gain or loss is recognized on contribution of property in exchange for an interest in a partnership. This is true as long as the contributing partners own at least 80% of the partnership following the exchange.