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Distributions to Contributors of Appreciated Property

This template computes the gain under IRC Sec. 737, if any, to be recognized on the distribution of property (other than cash) to a partner who previously contributed appreciated property, and to calculate the distributee partner’s basis in the distributed property and the partnership’s basis in the contributed appreciated property.

Entering Information

All of the information and calculations are contained on the input sheet of this template. The yellow highlighted cells are calculated fields, and no data should be entered in these cells.  Any gray cells are not calculated fields, but data should not be entered in these cells.

Enter the following information:

  • Fair market value (FMV) of property on the contribution date
  • Contributing partner’s tax basis in the property contributed
  • Book and tax basis information, as indicated in the input table in step 2. (Book depreciation and tax depreciation of property)
  • FMV of property received in distribution
  • Partner’s tax basis in the partnership immediately before the distribution
  • Cash received in the distribution (including marketable securities treated as cash)
  • Partnership’s basis in distributed property causing a Section 737 gain
Distributions to Contributors of Appreciated Property