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No gain or loss is recognized either to the partnership or to any of its partners...

No gain or loss is recognized either to the partnership or to any of its partners upon a contribution of property, including money to the partnership in exchange for a partnership interest (code Sec. 721(a)). This is true whether the contribution is

A. made for cash or a promissory note

B. made to an existing partnership or to a newly formed partnership

C. made in the form of services for a capital interest

D. a noncompensatory option received in lieu of a partnership interest

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No gain or loss is recognized either to the partnership or to any of its partners upon a contribution of property, including money to the partnership in exchange for a partnership interest (code Sec. 721(a)). This is true whether the contribution is whether the contribution is made to an existing partnership or to a newly formed partnership.

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