The records of a partnership must keep track of the differences between the basis in each property contributed by the partners and the value of that property at the contribution date. It will do this using tax basis and if the partnership uses section 704(b) special allocations, it will keep up with basis that way. Turkey Partnership does not have special allocations. Jake, a 50%partner, contributed property to the partnership that was worth $1,000,000having a basis to Jake of $250,000. One year later, Turkey partnership sells the property for $1,200,000. The partnership had no other transactions for the year other than the sale of this property. The partnership made no distributions. How much income must Jake report on his individual tax return from the transactions of the partnership? Show your calculations.
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