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Amy's Adjusted Basis in Giant Partnership; recognition of gain

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Amy acquired a 50% interest in the Giant Partnership by contributing property with an adjusted basis of $100,000. Amy would recognize a gain if
I. The fair market value of the contributed property exceeds its adjusted basis.
II. The property is encumbered by a mortgage with a balance of $50,000.

Choices - I only, II only, Both I and II, Neither I or II

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Solution Summary

The solution examines Amy's Ajusted Basis in Giant Partnership. The recognition of gain is determined.

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ANSWERS

ANSWER: NEITHER I OR II
Section 721(a) generally ...

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