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Jill and Jack form JJ Partnership. Jill transfers 1 0 0 shares Microsoft stock into the partnership in exchange for a 1 / 2 capital
Jill and Jack form JJ Partnership. Jill transfers shares Microsoft stock into the partnership in exchange for a capital and profits interest. Each Microsoft share has a FMV of $ dollars on the day of the exchange. Jill's tax basis in the stock is $ per share and it was purchased years ago. Jack transfers real estate held for investment into the partnership for a capital and profits interest. The real estate Jack transfers has a FMV of $ with a tax basis of $ It was purchased three years ago. Four years after formation the partnership distributes of its Microsoft shares to Jack. At the time of the distribution the FMV of the Microsoft stock is $ per share and Jack's outside basis is $ Jack's holding period for the stock after the distribution will be:
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Day after the distribution
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