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
Sam, Taylor, Joe, and Sonya form the STJS
Complete the partnership’s tax balance sheet, determine the proper allocation of debt for each liability, and determine each partner’s outside basis.
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