F and G form general partnership FG. Each partner contributes property subject to recourse liabilities....
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F and G form general partnership FG. Each partner contributes property subject to recourse liabilities. The fair market value (FMV) and the basis of the property contributed, and the liabilities assumed by FG are as follows:
PartnerAsset Adjusted Basis Gross FMV Debt Net FMV
F Building #1 150,000 600,000 300,000 300,000
G Building #2 250,000 400,000 100,000 300,000
Assume that all liabilities are shared equally by the partners. How much gain or loss, if any, will be recognized by the partners as a result of their contribution into FG? What is each partner's basis in their partnership interest immediately after formation?
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