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Partnership Contribution - Nontaxable
user-1528 - 08/20/2018, 5:38 pm

I thought the new partners had to control 80% or more for contributions to a partnership to be nontaxable. Since this one doesn't qualify, I thought the basis for the new partner would be the fair value (minus liability taken on by other partners).

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RAIN - 08/23/2018, 6:22 pm

You are thinking of a corporation.

No gain or loss shall be recognized to a partnership or to any of its partners in the case of a contribution of property to the partnership in exchange for an interest in the partnership.

See 26 U.S. Code § 721(a) General rule

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