Monica acquires a 25% interest in Terrapin Partnership during 2018 by contributing land with a fair market value of $35,000, an adjusted basis of $18,000, and subject to a mortgage of $12,000. The partnership assumes the mortgage. What is Monica's adjusted basis in her partnership interest? Discuss how you arrived at that adjusted basis amount, and the underlying reasoning behind the rules you applied.

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The Answer of Monica acquires a 25% interest in Terrapin Partnership during 2018 by contributing land with a fair market value of $35,000, an adjusted basis of $18,000, and subject to a mortgage of $12,000. The partnership assumes the mortgage. What is Monica's adjusted basis in her partnership interest? Discuss how you arrived at that adjusted basis amount, and the underlying reasoning behind the rules you applied.

Monica Acquires a 25% Interest in Terrapin Partnership During 2018