A Partnership Will Take a Carryover Basis in an Asset

question 102

Multiple Choice

A partnership will take a carryover basis in an asset it acquires when:

• A) The partnership acquires the asset through a § 1031 like-kind exchange.
• B) A partner owning 25% of partnership capital and profits sells the asset to the partnership.
• C) The partnership leases the asset from a partner on a one-year lease.
• D) The partnership acquires the asset from a partner as a contribution to partnership capital under § 721(a).
• E) None of these; the partnership always takes a substituted basis in the assets it receives.

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