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If a Personal-Use Asset Is Contributed to a Partnership for Business

Question 30

Multiple Choice

If a personal-use asset is contributed to a partnership for business use,the partnership's basis in the asset is always:


A) $0.
B) The FMV of the asset at the date of contribution.
C) The basis of the asset at the date of contribution.
D) The lesser of the asset's FMV or basis at the date of contribution.

Correct Answer:

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