Gerald received a one-third capital and profit (loss) interest in XYZ Limited Partnership (LP). In exchange for this interest, Gerald contributed a building with an FMV of $37,000. His adjusted basis in the building was $18,500. In addition, the building was encumbered with a $9,750 nonrecourse mortgage that XYZ LP assumed at the time the property was contributed. What is Gerald's outside basis immediately after his contribution? Multiple Choice $8,750 $12,000 $27,250 $28,250

Gerald received a one-third capital and profit (loss) interest in XYZ Limited Partnership (LP). In exchange for this interest, Gerald contributed a building with an FMV of $37,000. His adjusted basis in the building was $18,500. In addition, the building was encumbered with a $9,750 nonrecourse mortgage that XYZ LP assumed at the time the property was contributed. What is Gerald's outside basis immediately after his contribution? Multiple Choice $8,750 $12,000 $27,250 $28,250

SWFT Corp Partner Estates Trusts

42nd Edition

ISBN:9780357161548

Author:Raabe

Publisher:Raabe

Chapter10: Partnerships: Formation, Operation, And Basis

Section: Chapter Questions

Problem 26CE

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Gerald received a one-third capital and profit (loss) interest in XYZ Limited Partnership (LP). In exchange for this interest, Gerald contributed a building with a FMV of $26,000. His adjusted basis in the building was $13,000. In addition, the building was encumbered with a $7,800 nonrecourse mortgage that XYZ, LP assumed at the time the property was contributed. What is Gerald's outside basis immediately after his contribution? $5,200. $7,800. $18,200. $20,800.
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