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Steven's partnership basis for his interest in Brown Assoc

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On June 1, 2008, Mark Stevens received a 20% capital interest in Brown Associates, a partnership, in return for services rendered plus a contribution of assets with a basis to Stevens of $15,000 and a fair market value of $20,000. The fair market value of Steven's 20% interest was $38,000. How much is Steven's basis for his interest in Brown?
$15,000 or $20,000 or $33,000 or $38,000

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The expert examines Steven's partnership basis for an interest in Brown Assoc.

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Contributions by a partner of assets with a basis different from the fair market value of assets will establish an outside basis for the partner limited to the amount of his basis. That means that the ...

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