Raul contributes the following assets to a partnership for a 50% interest: What is Raul's basis in his partnership interest?

Question

Raul contributes the following assets to a partnership for a 50% interest:  What is Raul's basis in his partnership interest?

Quizplus · Accepted Answer

Raul's basis in the partnership interest equals the adjusted basis of the assets he contributed. We don't have information in the question about the adjusted basis of the assets, but we know that the partnership interest is worth $100,000, which is what he contributed to the partnership in exchange for a 50% interest. Therefore, his basis in the partnership interest is also $100,000.

Raul Contributes the Following Assets to a Partnership for a 50