Sabrina contributes a building with an adjusted basis of $80,000 to a partnership. The fair market value of the building is $100,000 on the date of the contribution. What is Sabrina's basis in her partnership interest immediately after the contribution?

Question

Quizplus · Accepted Answer

Sabrina's basis in her partnership interest immediately after the contribution is equal to her adjusted basis in the building contributed, which is $80,000. The fair market value of the building at the time of contribution does not affect the basis of her partnership interest.

Sabrina Contributes a Building with an Adjusted Basis of $80,000