In March of 2016 Phillip contributed investment land that he held for three years with a FMV of $18,3 12 and an adjusted basis of $12,000, and Renee contributed $12,000 cash to form the Green Partnership as equal partners. During 2016, the partnership earned ordinary income of $25,756 and made no distributions. On January 2nd, 2017, while the partnership still held the land, Philip sold his interest in the partnership to Paula for $23,000. On February 29th, Green Partnership sold the land for $8,575 What are the tax consequences of the various transactions? Note: Be sure to cite your authority in each of the situations!
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