Jane Contributes Land with an FMV of $100,000 and a Basis

question 58

Essay

Jane contributes land with an FMV of $100,000 and a basis of $40,000 to the Green Partnership in exchange for a 25% partnership interest. The partnership assumes the $80,000 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:

Change Blindness

A phenomenon where an observer fails to notice significant changes in a visual scene, indicating the selective aspects of visual perception.

Blindsight

A condition in which people are unable to consciously see objects in certain parts of their field of vision despite responding to them in non-conscious ways.

States of Consciousness

Different levels of awareness of one's surroundings, sensations, and thoughts, ranging from full alertness to deep sleep.

Mental Processes

Internal operations of the mind such as thinking, remembering, feeling, and perceiving that underlie individual human behaviors and experiences.