Question
Partner B is a 25% partner in ABCD Partnership. B contributes property with a value of $100,000 and a basis of $40,000 to the partnership.
Partner B is a 25% partner in ABCD Partnership. B contributes property with a value of $100,000 and a basis of $40,000 to the partnership. Within two weeks of the contribution, the partnership borrows $40,000 and immediately distributes this amount to Partner B. The liability is recourse and B's share of the partnership liability is 25%.
What portion of the contributed property has been deemed to be sold to the partnership by B?
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Value of the property contributed 100000 Basis of the property contributed40000 Recourse li...
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South Western Federal Taxation 2017 Corporations, Partnerships, Estates And Trusts
Authors: William H. Hoffman, William A. Raabe, David M. Maloney, James C. Young
40th Edition
1305874331, 978-1305874336
