When property is contributed to a partnership,the partnership's basis in the property is the same as that of the transferor partner even if gain is recognized on the transfer.

Question

Quizplus · Accepted Answer

According to the Internal Revenue Code section 721, when property is contributed to a partnership, the partnership's basis in the property is the same as the transferor partner's adjusted basis in the property at the time of the contribution, regardless of whether or not gain is recognized on the transfer. Therefore, the answer is True.

When Property Is Contributed to a Partnership,the Partnership's Basis in the Property