Milton contributed property to the MDB Partnership in 2006.At the time of the contribution,the basis in the property was $10,000 and its value was $15,000.In 2008,MDB distributed that property to partner Dana.Milton may be required to recognize gain on the distribution to Dana.

Question

Quizplus · Accepted Answer

A distribution of precontribution gain property results in gain to the contributing partner under § 704(c)(1)(B)if it is distributed to a partner other than the contributing partner within seven years of the contribution and any precontribution gain remains to be recognized.

Milton Contributed Property to the MDB Partnership in 2006