Sam, Taylor, Joe, and Sonya form the STJS partnership to invest in real estate. Sam contributes Building A (FMV = 1,500,000; basis = 1,275,000; subject to 1,350,000 of non-recourse debt). Taylor contributes Building B (FMV = 3,000,000; basis = 2,250,000; subject to 2,700,000 of non-recourse debt). Joe contributes Building C (FMV = 1,500,000; basis = 1,350,000; subject to 1,200,000 of non-recourse debt). Sonya contributes 750,000 cash.  The partners share profits and losses according to percentage interest.     Complete the partnership’s tax balance sheet, determine the proper allocation of debt for each liability, and determine each partner’s outside basis.    Assets Book Tax Debt Book Tax                                           Capital

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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            Sam, Taylor, Joe, and Sonya form the STJS partnership to invest in real estate. Sam contributes Building A (FMV = 1,500,000; basis = 1,275,000; subject to 1,350,000 of non-recourse debt). Taylor contributes Building B (FMV = 3,000,000; basis = 2,250,000; subject to 2,700,000 of non-recourse debt). Joe contributes Building C (FMV = 1,500,000; basis = 1,350,000; subject to 1,200,000 of non-recourse debt). Sonya contributes 750,000 cash.  The partners share profits and losses according to percentage interest.  

 

Complete the partnership’s tax balance sheet, determine the proper allocation of debt for each liability, and determine each partner’s outside basis. 

 

Assets

Book

Tax

Debt

Book

Tax

           
           

 

 

 

 

 

 

     

Capital

   
           

 

 

 

 

 

 

 

 

 

 

 

 

           

 

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