What is Ps adjusted basis in the partnership interest immediately after the

What is ps adjusted basis in the partnership interest

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Question 10. What is P's adjusted basis in the partnership interest immediatelyafter the formation?
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Question 11. What is the partnership's adjusted basis in the equipment? Question 12. What is Q's adjusted basis in the partnership interest? Question 13. P does not recognize any gain as a result of the formation of thepartnership. T/F? Question 13T. Why?
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Question 14 . What is P's adjusted basis in the partnership interest immediately after the formation? $-0- $3,000 $6,000 $30,000 $50,000 A: (B) P's adjusted basis in the property of $6,000 is reduced by the deemed distribution of $3,000 arising from the net liability relief. See §§722, 733, 752. -------------------------------------------------------------------------------------------- Question 15 . What is the partnership's adjusted basis in the equipment? $-0- $3,000 $6,000 $30,000 $50,000 A: (C ) The partnership's adjusted basis in the equipment is P's adjusted basis in the equipment immediately before the contribution. See §723. ------------------------------------------------------------------------------------------ Question 16 . What is Q's adjusted basis in the partnership interest? $-0- $17,000 $20,000 $23,000 $50,000 A: (D) Q's adjusted basis equals the $20,000 contributed in cash and the $3,000 increase in Q's share of partnership liabilities. The $3,000 is 1/2 of the $6,000 balance after taking into account P's $24,000 share based on the gain that would be allocated to P if the equipment were sold for $30,000. See §§722, 752(a); Reg. §1.752-3(a). ------------------------------------------------------------------------------------- Group: Partnership Allocations Section: Special Allocations: Basic Issues:
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