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When property is contributed to a partnership for a capital and profits interest

ID: 2565583 • Letter: W

Question

When property is contributed to a partnership for a capital and profits interest, the holding period of the contributing partner’s interest:

a.

May include the holding period of the contributed property.

b.

Always starts the day after the contribution date.

c.

Always starts the day the property was contributed.

d.

Never includes the holding period of the contributed property.

e.

None of the above.

a.

May include the holding period of the contributed property.

b.

Always starts the day after the contribution date.

c.

Always starts the day the property was contributed.

d.

Never includes the holding period of the contributed property.

e.

None of the above.

Explanation / Answer

answer is a

a. May include the holding period of the contributed property.

in the psrtnership holding period for the property will include the contributors holding period

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