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sjrcpa
Level 15
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Is it also in Box N of the K-1?

Did your client contribute appreciated property to the partnership?


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dennisj1
Level 2
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I have a situation where a new partnership was formed in 2020.  Two partners in the partnership contributed each 2% in cash, but received  an additional 2% share each at formation for "services rendered" (total share  of 4% + 4% = 8%)  .  This diluted the other 3 partners who contributed only cash at formation.  The other 3 partners who only contributed cash contributed 96% of the cash, but only received a 92% share of the partnership interests.

QUESTION:  Is the above scenario one that capital account revaluations?  Would it require reporting of Partner’s Share of Net Unrecognized Section 704(c) Gain or (Loss) on the 2020 1065 K-1?

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