Answer:
$55,000
Explanation:
Kevan tax basis is calculated as:
$120,000 + $15,000 + $90,000 + $40,000 - $210,00
Kevin tax basis = $55,000
Using the following illustration
Kevan contributed $120,000 to land
Jerry and Dave both contributed $0
Kevan contributed 15,000 in cash
Jerry and Dave both contributed $245,000 in cash
Kevan Nonrecourse mortgage in excess of the contributed amount to land is $90,000.
Jerry and Dave: $0
This is so because all nonrecourse debt greater than the amount is allocated to Kevan only.
Kevan, Jerry and Dave Remaining Nonrecourse mortgage is $40,000
This is calculated by 33.3% of ($210,000 - $90,000)
Kevan Relief from mortgage debt is $210,000
Jerry and Dave Relief from mortgage debt is $0
