Miguel contributes land to a partnership with a basis of $12,000 and a FMV of $18,000.How much gain will Miguel recognize?

Name: Miguel contributes land to a partnership with a basis of $12,000 and a FMV of $18,000.How much gain will Miguel recognize?
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Question

Quizplus · Accepted Answer

Miguel will recognize $0 gain because the transfer of property to a partnership in exchange for an interest in the partnership does not trigger recognition of gain or loss, as long as the transaction is covered under IRC Section 721.

Miguel Contributes Land to a Partnership with a Basis of $12,000