Question: When Thomas Properties LLC was formed, Candice contributed land (value of $200,000 and basis of $50,000) and $100,000 cash, and Oscar contributed cash of $300,000. Both partners receive a 50% interest in partnership profits and capital.
a) How is the land recorded for A 704(b) book capital account purposes?
b) What is Thomas Properties tax basis in the land?
c) If Thomas Properties sells the land several years later for $300,000, how much tax gain will Candice and Oscar report?