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:

Covalent Bonds

Chemical bonds formed by the sharing of electron pairs between atoms.

Intermolecular Bonds

Forces of attraction or repulsion between molecules, crucial for determining the physical properties of substances.

Diamond

The hardest naturally occurring mineral, commonly used as a gemstone and industrial abrasive.

Graphite

A soft, black, greasy-feeling carbon mineral.