year, Bruce formed an equal partnership with Norman. Bruce contributed land with

Question

year, Bruce formed an equal partnership with Norman. Bruce contributed land with an adiusted basis of $50,000 and a fair market value of $60,000. The land contributed by Bruce was encumbered by a $ 30, recourse debt. Bruce also contributed $40, 000 cash to the partnershp. 000 Norman contributed land with an adiusted basis of $15,000 and a fair market value of $80, 000. The land contributed by Norman was encumbered by $10,000 of recourse debt. Assume the partners share all debt equally. Immediately after the formation (and before any other transactions occurred) Norman's outside basis- Facts for 9 and 10. veneia is a 30% general partner in the calendar year, cash basis TUV partnership. The partnership earned incom following amounts

Explanation / Answer

Norman's outside basis = Adjusted basis in the property - Encumbrances =$15,000 - $10,000= $5,000.

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