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?© BrainMass Inc. brainmass.com June 3, 2020, 11:07 pm ad1c9bdddf
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 ...
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.