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

question 112

Essay

Jane contributes land with an FMV of $100,000 and a basis of $80,000 to the Green Partnership in exchange for a 25% partnership interest. The partnership assumes the $40,000 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:

Innate

describes traits or qualities that are present from birth, not learned or acquired after birth.

Mondegreens

Mishearings or misinterpretations of phrases as a result of near-homophony, often resulting in a new meaning or humorous effect.

Poor Hearing

A condition characterized by a reduced ability to perceive sounds, potentially leading to difficulties in communication and social interaction.

Best Knowledge

The highest level of understanding or expertise that an individual or collective has on a particular subject at a given time.