On January 1, 2019, Zena contributes property with a fair market value of $70,000 and an adjusted basis of $52,000, as well as legal services worth $8,000, to XYZ Partnership. Zena purchased the property on October 13, 2013. What is the partnership's basis in the property?

Question

Business

Journey Pham

2 November, 04:31

On January 1, 2019, Zena contributes property with a fair market value of $70,000 and an adjusted basis of $52,000, as well as legal services worth $8,000, to XYZ Partnership. Zena purchased the property on October 13, 2013. What is the partnership's basis in the property?

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Answers (1)

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Esmeralda Brennan · Answer 1

The partnership's basis in the property is $70,000

Explanation:

Partnership defines that it is an agreement between two or more people to share their profits and losses in their profit sharing ratio.

According to the scenario Zena shares property of $70,000 and an adjusted basis of $52,000 and legal services with XYZ partnership, Zena bought the assets on 13 October in 2013. The partnerships basis in the property contributed by Zena is $70,000 (adjusted basis of the partnership)