Daniel acquires a 30% interest in the PPZ Partnership from Paolo, an existing partner for $39,000 of cash. The PPZ Partnership has borrowed $10,000 of recourse liabilities as of the date Daniel bought the interest. What is Daniel's basis in his partnership interest?

Question

Quizplus · Accepted Answer

Daniel's outside basis will include his $3,000 (30% × $10,000) share of the partnership liabilities.

Daniel Acquires a 30% Interest in the PPZ Partnership from Paolo