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Rachael and Ray form an equal partnership R&R on January 1, 20X1. Rachael contributes $100,000 in exchange for her one-half interest; Ray contributes land worth
Rachael and Ray form an equal partnership R&R on January 1, 20X1. Rachael contributes $100,000 in exchange for her one-half interest; Ray contributes land worth $170,000, which is subject t o a 70,000 debt, which R&R assumes. Rays adjusted basis in the land is $30,000 What are the tax consequences to Rachel, Ray and R&R?
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