When Property Is Contributed to a Partnership for a Capital

question 80

Multiple Choice

When property is contributed to a partnership for a capital and profits interest,the holding period of the contributing partner's interest:

• A)May include the holding period of the contributed property.
• B)Always starts the day after the contribution date.
• C)Always starts the day the property was contributed.
• D)Never includes the holding period of the contributed property.
• E)None of the above.

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Definitions:

Straight-Line Method

A depreciation method where an equal amount of depreciation expense is allocated for each year of the asset's useful life.