What issues arise if a partner contributes appreciated property to a partnership and other appreciated property...

What issues arise if a partner contributes appreciated property to a partnership and other appreciated property is distributed to that partner.

For example, a partner has a $60,000 basis in the partnership interest just before receiving a parcel of land as a liquidating distribution, the partner will have no remaining precontribution gain and will receive no other distribution. What will be the partners basis in the land once it is distributed upon termination? Explain fully.

Expert Solution

A partner who contributes appreciated property to a partnership may also be taxed if the parternship distributes other property to him within 7 years of his contribution.A partner to whom a partnership distributes property must recognize gain which is lower of:

A.Excess distribution

B. net pre contribution gain

ekkarill92 answered 2 years ago

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