Lacy contributes the following assets to a partnership for a 25% interest: $\begin{array}{lllll}&\text { Lacy's Basis }&FMV\
\text { Land } & \$ 15,00 C & \$ 50,000 \
\text { Van } & \$ 10,00 C & \$ 15,000\
\text { Total }&\$25,000&\$65,000
\end{array}$ The land and the van have a basis to the partnership of:

Question

Lacy contributes the following assets to a partnership for a 25% interest: $\begin{array}{lllll}&\text { Lacy's Basis }&FMV\
\text { Land } & \$  15,00 C & \$ 50,000 \
\text { Van } & \$  10,00 C & \$  15,000\
\text { Total }&\$25,000&\$65,000
\end{array}$ The land and the van have a basis to the partnership of:

Quizplus · Accepted Answer

The basis of the assets contributed to a partnership by a partner is carried over to the partnership. Thus, the partnership's basis in the land is $15,000, and in the van is $10,000, reflecting Lacy's basis in those assets.

Lacy Contributes the Following Assets to a Partnership for a 25