After an asset contribution by a partner to a partnership, the partner's basis for his or her ownership interest is the same as the basis of the assets contributed no liabilities are involved).

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This statement is true according to the tax law. When a partner contributes an asset to a partnership, the partner's basis in their ownership interest is equal to the basis of the asset contributed. This is known as the "inside" basis of the partner's interest. If there are no liabilities involved in the contribution, the inside basis is equal to the fair market value of the asset at the time of the contribution.

After an Asset Contribution by a Partner to a Partnership