Jill and Jack form JJ Partnership (a general partnership). Jill transfers $10,000 cash into the partnership in exchange for a capital and profits interest. Jack transfers $5,000 cash into the partnership for a capital and profits interest. The partners agree to share profits and losses equally. The partnership decides to purchase a parcel of real estate for $30,000. It uses the $15,000 of cash contributed and takes out $15,000 of recourse debt. The partnership will have a tax basis and holding period in the real estate of:
$30,000/Day after
$15,000/Day After
$15,000/Tacked
$30,000/Tacked