Jacque and John formed the equal JJ Partnership during the current year, with Jacque
contributing $60,000 in cash and John contributing land (basis of $30,000, fair market
value of $20,000) and equipment (basis of $10,000, fair market value of $40,000).
recognizes no gain or loss on the contribution and his basis in his partnership interest is
On the first day of the current tax year, Sienna’s basis in her partnership interest was
Her Schedule K-1 from the partnership reflected the following items for the
current year: share of partnership ordinary loss, $20,000; interest income from money
market accounts, $3,000.
On her personal tax return, Sienna will report a loss from the
partnership of $20,000, and interest income of $3,000.
Bradley contributes land with a value of $70,000 and a basis of $40,000 to the JST
partnership in exchange for a 1/3 interest. Soon thereafter, the partnership sells the land
Of the gain on the land sale, $40,000 is allocated to Bradley.
During the current year, Jefferson and Taylor form the JT Partnership and agree to share
profits and losses equally.
Jefferson contributes cash of $50,000 and Taylor contributes
land with a fair market value of $90,000 (subject to a $40,000 nonrecourse mortgage).
On the contribution date, Taylor’s adjusted basis in the land is $50,000.
after formation, Jefferson’s partnership outside basis is $70,000, Taylor’s partnership
outside basis is $30,000, and JT’s basis in the land is $50,000.
Andrew’s basis in his partnership interest was $20,000 at the beginning of the tax year.
For the year, his share of the partnership’s loss was $20,000, and he also received a
distribution of $6,000.
Andrew can deduct a $14,000 loss, and the remaining $6,000 loss
is suspended until a year in which he has adequate basis.
In the current year, Ashley formed an equal partnership with Reede.
land with an adjusted basis of $200,000 and a fair market value of $300,000.
also contributed $100,000 cash to the partnership.
Reede contributed land with an
adjusted basis of $120,000 and a fair market value of $360,000.
The land contributed by
Ashley was encumbered by a $40,000 nonrecourse debt.
Assume the partners share debt
Immediately after the formation, the basis of Ashley’s partnership interest is: