Answer :
An investment approach known as a real estate partnership pools the benefits of two or more investors to create a single investment property.
A real estate partnership is what?
- Partnerships are often divided into two categories: active partnerships, where all participants have equal responsibility for day-to-day management, and passive partnerships, which are used to attract capital from investors who are less involved.
- A real estate partnership is one of the most well-liked types of pass-through companies. Contrary to corporations, pass-through entities are excluded from paying entity-specific taxes such as corporate income tax. Instead, its owners make individual income tax payments based on the earnings that they receive.
- Even though the investor is just the single owner of the real estate, they must still report the net income from the asset on their personal tax return.
The complete Question is:
Fontaine and Monroe are forming a partnership. Fontaine invests a building that has a market value of $250,000; the partnership assumes responsibility for a $75,000 note secured by a mortgage on the property. Monroe invests $100,000 in cash and equipment that has a market value of $55,000. For the partnership, the amounts recorded for the building and for Fontaine's Capital account are:
a. Building $250,000; Fontaine, Capital $250,000.b. Building $175,000; Fontaine, Capital $175,000.c. Building $250,000; Fontaine, Capital $75,000.d. Building $250,000; Fontaine, Capital $175,000.e. Building $175,000; Fontaine, Capital $75,000
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