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    Peggy Pink's partnership basis after contributing property

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    In 2006 Peggy Pink contributed property to a new partnership in return for a 50% interest in capital and profits. The property had a fair market value of $10,000, an adjusted basis of $6,000, and was subject to a $9,000 mortgage which was assumed by the partnership. What was Pink's basis in the partnership as a result of this contribution?

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    https://brainmass.com/business/interest-rates/peggy-pinks-partnership-basis-contributing-property-264029

    Solution Preview

    First, a couple of tax law rules:

    1. Contribution of assets to a partnership do not constitute a taxable event to Pink.
    2. Relief of debt reduces the amount ...

    Solution Summary

    The expert examines Peggy Pink's partnership basis after contributing property. Pink's basis in the partnership as a result of the contirbution are determined.

    $2.19

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