Jenny contributes land (adjusted basis of $300,000; fair market value of $280,000) and cash of $40,000 to the newly formed Green Partnership. Green will have a basis in the land of $280,000.

Question

Quizplus · Accepted Answer

The fair market value of the contributed property is less than the adjusted basis, so the partnership's basis in the property will be the lower fair market value of $280,000.

Jenny Contributes Land (Adjusted Basis of $300,000; Fair Market Value