Does pat recognize gain or loss on the transfer

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Question: Peter transfers a piece of land to Partnership PAT for a partnership interest, The land had an adjusted basis in Peter's hands of $25 and a fair market value of $100. Peter receives a capital account in PAT of $100 and a 5% profits interest. PAT has no liabilities at the time of the transfer.

a) Does Peter recognize gain or loss on the receipt of the partnership interest? If yes, how much is it?

b) What is Pete's adjusted outside basis and holding period in the partnership interest he receives?

c) Does PAT recognize gain or loss on the transfer?

d) What is PAT's adjusted basis and holding period in the land?

Reference no: EM132764930

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