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MED PARTNERSHIP AND OPERATIONS #2    A partner contributes land with a basis of $ 23...

MED PARTNERSHIP AND OPERATIONS #2   

A partner contributes land with a basis of $ 23 and a fair market value of $ 14 in return for a share in a partnership. The partnership sells the land for $ 8 two years later. Normally, the loss would be ordinary to the partnership. What is the amount of the capital gain or (loss) at the time of sale? (Express gains as positives and losses as negatives.)

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Answer #1

Adjusted Basis of land $23

Fair market value $14

Built in loss - $9

Partnership basis of land $23

Selling price of land $8

Capital loss -$15

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