You must show your calculations
11. George and James are forming the GJ Partnership. George contributes $600,000 cash and James contributes land with an adjusted basis of $400,000 and a fair market value of $750,000. The property is subject to a $150,000 liability, which is also transferred into the partnership and is shared 60% by George and 40% by James for basis purposes. George and James also share 60% and 40% respectively in all partnership profits except for any pre-contribution gain, which must be allocated according to the statutory rules for built-in gain allocations.
a.
?
What is James's adjusted tax basis for his partnership interest immediately after the partnership is formed?
b.
What is the partnership's adjusted basis for the property contributed by James?
c.
?
If the partnership sells the property contributed by James for $800,000, how is the tax gain allocated between the partners
