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Mr. McRich is a limited partner with a 60% loss interest and a 30% profit interest in the XYZ Partnership. Mr. McRich contributed $10,000 cash
Mr. McRich is a limited partner with a 60% loss interest and a 30% profit interest in the XYZ Partnership. Mr. McRich contributed $10,000 cash for his partnership interest. At the time of his contribution, the partnership had recourse liabilities of $100,000 and nonrecourse liabilities of $70,000. There is no minimum gain related to the nonrecourse debt. For the recourse debt, economic risk of loss is shared by the partners based on each partners loss interest. Mr. McRichs basis in his partnership interest is ...????
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