Martha transferred property with a FMV of $60,000 (adjusted basis $30,000), which is subject to a $40,000 mortgage in exchange for a one- third interest in a partnership. The partnership has no other liabilities. The partners of MNO own the partnership equally. The partnership's basis in the property contributed is

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The partnership's basis in the property is the adjusted basis of the property in the hands of the partner immediately before the contribution, which is $30,000.

Martha Transferred Property with a FMV of $60,000 (Adjusted Basis