Question
X, Y, and Z each contribute to the XYZ Partnership: X: 60,000 cash Y: Land worth $120,000 and subject to a non-recourse mortgage of $60,000.
X, Y, and Z each contribute to the XYZ Partnership:
X: 60,000 cash
Y: Land worth $120,000 and subject to a non-recourse mortgage of $60,000. The land has a basis of $40,000 in Y's hand and is held for more than a year
Z: Future Services
All profits and losses are split equally. And there is unlimited deficit restoration and mainentance of capital accounts. Traditional method for allocations is used.
What are the tax consequences to X,Y, and Z?
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Accounting and Finance An Introduction
Authors: Peter Atrill, Eddie McLaney
8th edition
129208829X, 1292088297, 978-1292088297
