On April 4,2017,Joan contributes business equipment (she had purchased on October 23,2012) having a $45,000 FMV and a $40,000 adjusted basis to the EJK Partnership in exchange for a 25% interest in the capital and profits.The basis of the property and the date the holding period begins for the partnership is

Question

Quizplus · Accepted Answer

A) The basis is the "carryover" basis of $40,000. Because the carryover basis is used and it is Sec. 1231 property, the holding period is based on the date of purchase of the property.

On April 4,2017,Joan Contributes Business Equipment (She Had Purchased on October