Which of the Following Statements Is True When Property Is

question 65

Multiple Choice

Which of the following statements is True when property is contributed in exchange for a partnership interest?

• A) Any contributed property in a partnership has a carryover basis, and the character of the property is determined by the way the contributing partner used the property.
• B) The partnership's inside basis is typically increased by any gain the partner recognizes from the property contribution.
• C) The holding period for a partner's partnership interest depends upon the type of assets a partner contributes.
• D) Services are not allowed to be contributed to a partnership in return for a partnership interest.
• E) All of the choices are True.

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