What is the partnerships inside basis in its property

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Reference no: EM133472409

Case: On January 2, 2019, A, B & C form a general partnership (ABC) in which each has the same interest in the partnership's capital and profits/losses. A contributes Land with a FMV of $625,000 and an adjusted basis of $235,000. At the time of contribution it is encumbered by a $325,000 nonrecourse liability. B contributes Property #1 with a FMV of $350,000 and an adjusted basis of $190,000. At the time of its contribution it was encumbered by a $50,000 nonrecourse liability. C contributes $300,000 of cash.

Question 1: What are the partnership's book capital account balances?

Question 2: What is the partnership's inside basis in its property?

Question 3: What is each partner's outside basis in their partnership interest?

Reference no: EM133472409

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