During the formation of Matt partnersh basis of $140,000 in exchange for a 2-

Income Tax Fundamentals 2020
38th Edition
ISBN:9780357391129
Author:WHITTENBURG
Publisher:WHITTENBURG
Chapter10: Partnership Taxation
Section: Chapter Questions
Problem 3P
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. During the formation of Matt partnership, Tom contributed property with an adjusted
basis of $140,000 in exchange for a 25% interest in Matt. The fair market value of the
contributed property was $175,000 and the property was encumbered by nonrecourse
debt with a balance of $130,000. What amount of gain should Tom recognize from
contributing property to the Weaver partnership?
Transcribed Image Text:. During the formation of Matt partnership, Tom contributed property with an adjusted basis of $140,000 in exchange for a 25% interest in Matt. The fair market value of the contributed property was $175,000 and the property was encumbered by nonrecourse debt with a balance of $130,000. What amount of gain should Tom recognize from contributing property to the Weaver partnership?
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