Bethany contributes a building to a partnership with a basis of $120,000 and a FMV of $200,000.Bethany's basis in her partnership interest would:

Question

Quizplus · Accepted Answer

Bethany's basis in her partnership interest would increase by the amount of her contribution, which is $120,000. Therefore, her basis in her partnership interest would be $120,000 higher than it was before the building was contributed to the partnership.

Bethany Contributes a Building to a Partnership with a Basis