Joel and Desmond are forming the JD Partnership. Joel contributes $300,000 cash and Desmond contributes nondepreciable property with an adjusted basis of $80,000 and a fair market value of $330,000. The property is subject to a $30,000 liability, which is also transferred into the partnership and is shared equally by the partners for basis purposes. Joel and Desmond are equal partners.Required (show all of your work clearly labeled): a. What is Desmond’s adjusted tax basis for his partnership interest immediately after the partnership is formed?b. What is the partnership’s adjusted basis for the property contributed by Desmond?c. If the partnership sells the property contributed by Desmond for $360,000, how is the tax gain allocated between the partners?
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