how does the partner's gain upon contribution affect the partnership's basis in its assets? A. It affects pa...
how does the partner's gain upon contribution affect the partnership's basis in its assets?
A. It affects partnership's basis in its assets as a decrease.
B. It affects partnership's basis in its assets as an increase.
C. It does not affects partnership's basis in its assets
A. Partners do not recognize gain upon contribution.
Homework Answers
C.It doesnot affects partnership's basis in its asset
Reason:
When you contribute property to partnership inexchange for partnership interest one shouldnot recognise gain or loss.The basis you have on contribution (property ) becomes both basis in property in partnership and interest in partners interest basis
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