Raul contributes the following assets to a partnership for a 50% interest: $\begin{array}{lccc}
& \text { Raul's Basis } & & \text { FIMV } \
\text { Building }& \$ 75,00 0 & & \$ 125,00 \
\text { Computer Equipment }& \$ 72,000 & & \$ 30,000 \
\text { Total }& \$ 100,00 0 & & \$ 55,000 \
\hline
\end{array}$ What is Raul's basis in his partnership interest?

Question

Raul contributes the following assets to a partnership for a 50% interest: $\begin{array}{lccc}
 & \text { Raul's Basis } & & \text { FIMV } \
 \text { Building }& \$ 75,00 0 & & \$ 125,00 \
 \text { Computer Equipment }& \$ 72,000 & & \$ 30,000 \
 \text { Total }& \$ 100,00 0 & & \$ 55,000 \
\hline
\end{array}$ What is Raul's basis in his partnership interest?

Quizplus · Accepted Answer

Raul's basis in his partnership interest is the value of the assets he contributes. The total value of the assets is $100,000, which means his basis in the partnership is also $100,000. Option A is incorrect because Raul has contributed assets to the partnership, so his basis cannot be $0. Option B is incorrect because the total value of the assets contributed is $100,000, not $50,000. Option D is incorrect because it is not provided how the value of $155,000 is determined.

Raul Contributes the Following Assets to a Partnership for a 50