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George Receives a 10% Limited Partnership Interest (Capital and Profits

Question 25

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George receives a 10% limited partnership interest (capital and profits interest)in the HIJ Partnership in return for managing the partnership's rental property. The partnership interest has an FMV of $35,000. What is the amount and character of the income (if any)that George must report as a result of becoming a partner?

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George recognizes $35,000 of o...

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