Question

what is NOT a factor concerning the distinction between a tax free contribution of property to a partnership by a partner and a disguised sale of property by the partner to a partnership? A. if the timing and amount of a subsequent transfer are determinable with reasonable certainty at the time of an earlier transfer. B. if within 5 year period a partner transfers property to a part'ship transfers money or other consideration to the partner. C. if the partner's right to receive the transfer of money or other consideration is secured in any manner, taking into account the period during which it is secured. D. if partnership distribution, allocations or control of part'ship operations is designed to effect an exchange of the burdens and benefits of ownership of property.

Answer 1

The answer is option "B" - if within 5 year period a partner transfers property to a part'ship transfers money or other consideration to the partner.

Explanation: The distinction between a tax free contribution of property to a partnership by a partner and a disguised sale of property by the partner to a partnership is determined using the list of 10 factors that is taken into account on the date of the earliest of the transfers. The distinction as mentioned in option "B" is not a part of that list.