In the current year, Bruce formed an equal partnership with Norman. 8. Bruce con
ID: 2573587 • Letter: I
Question
In the current year, Bruce formed an equal partnership with Norman. 8. Bruce contributed land with an adjusted 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 partnership. 000 Norman contributed land with an adjusted 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 =Explanation / Answer
Norman basis= adjusted basis of land contributed - share of land realted liability assumed by other partners + share of liablity assumed by Norman
= 15000 -10000*50% +30000*50%= 25000