On April 30 of the current year, Ashley contributes a building with a $155,000 basis and a $235,000 FMV in exchange for a partnership interest. She purchased the building eight years ago.a. What is Ashley's basis in her partnership interest? b. What is Ashley's holding period of her partnership interest? c. What is the basis of the building in the hands of the partnership? d. What is the holding period of the building in the hands of the partnership? e. How will the partnership depreciate the building in the year of contribution?
What will be an ideal response?
a. The same as her basis in the building - $155,000.
b. The partnership interest has an eight-year holding period - the same as the building in the hands of the partner.
c. $155,000 - carryover basis.
d. 8 years - the same as in the hands of the partner.
e. The partnership steps into the shoes of the partner - 8th year of the depreciation life.
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