When Property Is Contributed to a Partnership in Exchange for a Capital

question 80

Multiple Choice

When property is contributed to a partnership in exchange for a capital and profits interest, when does the partner's holding period begin for the partnership interest?

• A) The day after the contribution date.
• B) The day the property was contributed.
• C) The day the contributed property was purchased.
• D) The day the partnership interest was acquired.
• E) Either (or both) c. and d. may be true, depending upon the types of property contributed.

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Definitions:

Numbered Order

A sequenced arrangement where items are organized numerically based on their order of importance or sequence.

Zombie Noun

A term often used in editing to describe a noun form of a verb or adjective that can make writing unnecessary complex or lifeless.

Purchasing Department

A division within a business that is responsible for acquiring goods and services necessary for the organization's operations.

RFP

An acronym for Request for Proposal, a document that solicits proposals, often through a bidding process, by an agency or company interested in procurement of a commodity, service, or valuable asset.