Mark contributed property to the MDB Partnership in year 1. At the time of the contribution, the basis in the
property was $40,000 and its value was $50,000. In year 5, MDB distributed that property to partner Dara. Because this is a distribution of precontribution gain property, Dara may be required to recognize a gain.

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The Answer of Mark contributed property to the MDB Partnership in year 1. At the time of the contribution, the basis in the
property was $40,000 and its value was $50,000. In year 5, MDB distributed that property to partner Dara. Because this is a distribution of precontribution gain property, Dara may be required to recognize a gain.

Mark Contributed Property to the MDB Partnership in Year 1