Greg, a 40% Partner in GSS Partnership, Contributed Land to the Partnership

question 56

Essay

Greg, a 40% partner in GSS Partnership, contributed land to the partnership in exchange for his partnership interest when the partnership was formed. At the time, his basis in the land was $30,000 and its FMV was $133,000. Three years after the partnership was formed, GSS Partnership decided to sell the land to an unrelated party for $150,000. When the land is sold, how much of the gain should be allocated to each partner of GSS Partnership if Sam and Steve are each 30% partners?

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Definitions:

Intimacy

The sense of being close and emotionally connected and supported; it involves sharing thoughts, desires, and feelings with another.

Shame and Doubt

Shame and Doubt describe a developmental stage in Erik Erikson's theory, typically around early childhood, where children learn to assert their independence; if not handled well, they may feel inadequate.

Generativity

A concept in Erikson's theory of psychosocial development focusing on the desire to produce or generate something that contributes to society and the next generation.

Stagnation

A period or state of inactivity or lack of growth, often used to describe periods of limited personal or professional development.