Richard Made a Contribution of Property to the Newly Formed

question 52

Multiple Choice

Richard made a contribution of property to the newly formed QRST Partnership.The property had a $30,000 adjusted basis to Richard and a $100,000 fair market value on the contribution date.The property was also encumbered by a $50,000 nonrecourse debt,which was transferred to the partnership on that date.Another partner,Sylvia,shares 1/3 of the partnership income,gain,loss,deduction,and credit.Under IRS regulations,Sylvia's share of the nonrecourse debt for basis purposes is:

• A)$10,000.
• B)$30,000.
• C)$36,667.
• D)$40,000.
• E)$50,000.

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Definitions:

Cost of Housing

The total expenses associated with acquiring and living in a home, including purchase price, rent, maintenance, and utilities.

Forgone Income

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Part-time Job

Employment with fewer hours per week than a full-time position, often offering flexibility but with lesser benefits.

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A regulated and officially sanctioned sport event featuring teams of professional baseball players.