Mr. Jamail transferred business personality (FMV $187,000; adjusted tax basis $29,900) to J&K Partnership in exchange for a partnership interest. Which of the following statements is true?
A) If Mr. Jamail owns a 14% partnership interest immediately after the exchange, he must recognize a $157,100 gain.
B) If Mr. Jamail owns a 34% partnership interest immediately after the exchange, he recognizes no gain on the exchange.
C) If Mr. Jamail owns a 14% partnership interest immediately after the exchange, his tax basis in the interest is $187,000.
D) Statements a. and c. are true.
Correct Answer:
Verified
Q74: A fire destroyed equipment used by BLP
Q84: Mrs. Brinkley transferred business property (FMV $340,200;
Q84: Mrs.Brinkley transferred business property (FMV $340,200; adjusted
Q86: Three individuals transferred property to newly formed
Q95: Which of the following statements about the
Q97: IPM Inc. and Zeta Company formed IPeta
Q98: Mrs.Brinkley transferred business property (FMV $340,200; adjusted
Q102: On January 21, 2005, Andy purchased 350
Q103: Mr.and Mrs.Meredith own a sole proprietorship consisting
Q107: Sissoon Inc. exchanged a business asset for
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents