Contributed property with a fair market value

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Myself and three of my acquaintances, Ben, Charlie, and Diana have entered into ABCD partnership in January of 2015. I contributed cash of $5,000 in exchange for 25% interest in the partnership. Ben contributed property with a fair market value of $5,000 a basis of $4,000 and liabilities of $800 in exchange for 25% interest. Charlie contributed debt instruments valued at $5,000 with built-in losses of $2,000 in exchange for 25% interest. And finally Diana, who is a lawyer, contributed services valued at $5,000 in exchange for 25% interest. Immediately after the formation of the partnership ABCD sold the newly-contributed debt instruments to an outside third party for $3,000 and recognized the $2,000 loss. At the same time Charlie sold his 25% interest to me for $5,000. I need to know the basis of the partnership interest for each of the four partners. I also need to know any gains or losses that need to be recognized by the partners or the partnership in regards to each of these contributions. Over the year the partnership made $20,000 in ordinary income and $3,000 LTCG (from the above mentioned securities). I need to know which forms I will need to file for my 2015 partnership tax return, and then how much income will flow to each individual partner. Please let me know if you need any further information.

Reference no: EM131059289

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