Ask Question
BusinessBusiness
5 August, 14:52

When property is contributed to a partnership in exchange for a capital and profits interest, when does the partner's holding period begin for the partnership interest? Group of answer choices The day the property was contributed. The day the partnership interest was acquired. Either (or both) c. and d. may be true, depending upon the types of property contributed. The day after the contribution date. The day the contributed property was purchased.

+4
Answers (1)
  1. 5 August, 15:20
    0
    The day the property was contributed.

    Explanation:

    A holding period refers to the time period an asset or investment is held by a business or an investor, or the period between when the asset is bought and when it is sold.

    The character or type of an asset contributed to a partnership in exchange for a capital and profits interest determines the beginning of the partner's holding period as follows:

    1. If the capital asset or property contributed by the partner has been used in a trade or business just before it is contributed to the partnership, the holding period of the partner for the partnership interest will include the holding period of the capital asset or property contributed.

    2. If the capital asset or property contributed by the partner is exchanged for money, capital or other property, the beginning of the holding period of the partner in the day of acquisition of the interest, i. e., the day the property was contributed.

    Since the question states that the property is contributed to a partnership in exchange for a capital and profits interest, rule number 2 above therefore applies. That is, the partner's holding period begin for the partnership interest the day the property was contributed.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “When property is contributed to a partnership in exchange for a capital and profits interest, when does the partner's holding period begin ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
Jane wins $100 comma 000 playing the lottery, and instead of spending it, she deposits it into her checking account at the First Bank of Anywhere. Her bank makes a loan (equal to its excess reserves) to Mary, who uses the money to remodel her home.
Answers (1)
How does a pension fund act as an investor? a. The fund lends money to those who are also investors in it. b. The company invests the money collected from employers and/or employees. c.
Answers (2)
Purple Corporation acquired 75 percent of Socks Corporation's common stock on January 1, 20X8, for $435,000.
Answers (1)
Under what circumstances might a business plan include a funding request for working capital? Select one: a. It is just starting out. b. It is earning significant profit. c. The owner has saved significant funds. d.
Answers (1)
gmat An international basketball tournament will be held in either Nation QN or Nation RN. Exactly six nations, including the host, plan to participate, depending on the following conditions: SN will participate only if TN does.
Answers (1)
New Questions in Business
Appalachian mountain goods has paid increasing dividends of $.10, $.12, $.15, and $.20 a share over the past four years, respectively.
Answers (1)
What type of skills tends to be equally important at all levels of management? a. technical skills b. human skills c. decisional skills d. motivation to manage e. conceptual skills
Answers (1)
Faldo Corp sells on terms that allow customers 45 days to pay for merchandise. Its sales last year were $325,000, and its year-end receivables were $60,000. If its DSO is less than the 45-day credit period, then customers are paying on time.
Answers (1)
Which NIMS structure develops, recommends, and executes public information plans and strategies? A. Emergency Operations Center (EOC). B. Incident Command System. C. MAC Groups. D. Joint Information System (JIS).
Answers (1)
Rules of Debit and CreditThe following table summarizes the rules of debit and credit. Indicate whether the proper answer is a debit or a credit.
Answers (1)
Home » Business » When property is contributed to a partnership in exchange for a capital and profits interest, when does the partner's holding period begin for the partnership interest? Group of answer choices The day the property was contributed.
Sign Up Forgot Password?