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Partnership Contribution Basis

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Len and Nina form an equal parnership with a cash contribution of $800,000 from Len and a property contribution (adjusted basis of $600,000, fair market value of $800,000) from Nina.

a) How much gain, if any, must Len recognize on the transfer? Must Nina recognize any gain?

b) What is Len's basis in his partnership interest?

c) What is Nina's basis in her partnership interest?

d) What basis does the partnership take in the property transferred by Nina?

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This solution consists of determinations of partnership basis.

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a. No gain or loss is recognized in the formation of a partnership. Neither Len nor Nina recognizes any gain or ...

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