Jane Contributes Land with an FMV of $100,000 and a Basis

question 58

Essay

Jane contributes land with an FMV of $100,000 and a basis of $40,000 to the Green Partnership in exchange for a 25% partnership interest. The partnership assumes the $80,000 mortgage on the land. Mary has a 25% share of partnership liabilities. The Green Partnership has $8,000 in liabilities immediately before Jane's contribution. What is Jane's basis in her partnership interest?

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Definitions:

Occupation

The control and possession of a territory by a foreign military force, or the broad range of jobs and careers that individuals engage in within a society.

Residential Segregation

The physical separation of two or more groups into different neighborhoods, often based on race, ethnicity, or economic status.

Abolitionist Movement

A historical campaign against slavery and the slave trade, advocating for the emancipation of slaves and the end of racial discrimination and segregation.

Antebellum Boston

Refers to the period and characteristics of Boston, Massachusetts, before the American Civil War, highlighting its cultural, social, and economic aspects.