Luke, Leia, and Lando contributed assets to form the equal Triple LLL Partnership. Luke contributed...
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Luke, Leia, and Lando contributed assets to form the equal Triple LLL Partnership. Luke contributed cash of $40,000 and land with a basis of $80,000 (fair market value of $60,000). Leia contributed cash of $60,000 and land with a basis of $50,000 (fair market value of $40,000). Lando contributed cash of $60,000 and agreed to be the general manager of the partnership for a $100,000 partnership interest.
How much gain (and what character of gain) will each partner realize and recognize?
What will be the outside basis for each partner?
What will be the partnerships inside basis?
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