What is Patti basis in her partnership interest

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Question - On June 1 of the current year, Patti contributes equipment with a $45,300 basis and a $36,000 FMV in exchange for a partnership interest. She purchased the equipment five years ago.

a. What is Patti's basis in her partnership interest?

b. What is Patti's holding period of her partnership interest?

c. What is the basis of the equipment in the hands of the partnership?

d. What is the holding period of the equipment in the hands of the partnership?

e. How will the partnership depreciate the equipment in the year of contribution?

-Start depreciation as a new asset

-Continue existing depreciation

-Not depreciate the equipment

Reference no: EM133028720

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