Jamie Contributed Fully Depreciated ($0 Basis) Property Valued at $30,000

question 81

Essay

Jamie contributed fully depreciated ($0 basis) property valued at $30,000 to the JKLM Partnership in exchange for a 40% interest in partnership capital and profits. During the first year of partnership operations, JKLM had net taxable income of $80,000 and tax-exempt income of $10,000. The partnership distributed $20,000 cash to Jamie. Her share of partnership recourse liabilities on the last day of the partnership year was $13,000. What is Jamie's adjusted basis (outside basis) for her partnership interest at the end of the tax year?

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Definitions:

Relational Aggression

A form of aggression in which harm is caused through manipulation or damage to relationships or social standing.

Gender Norm

Societal rules and expectations about behaviors, attitudes, and appearances considered appropriate for individuals based on their perceived gender.

Shame In Response

A feeling of humiliation or distress caused by the awareness of wrong or foolish behavior.

Chinese

Relating to China or its languages, culture, and people.