Sebastian Contributed Property with a Tax Basis of $30,000 and a Fair

question 50

Multiple Choice

Sebastian contributed property with a tax basis of $30,000 and a fair market value of $75,000 to a new partnership in exchange for a 50 percent interest.The property was encumbered by a $50,000 mortgage that the partnership assumed.The other partner contributed $25,000 cash.What is Sebastian's basis in his partnership interest?

• A)$5,000
• B)$25,000
• C)$30,000
• D)$50,000