In reading the original question / facts you note ".....just swap equity for property".
I'm not sure what the impact is on the partner receiving the property.
- Still a partner with no equity change?
- If "yes" what did the other partner(s) receive?
- Still a partner, however, there was a reduction in equity?
- Partner no longer a partner; received a property distribution in liquidation of their partnership interest
*A reminder that posts in a forum such as this do not constitute tax advice.
Also keep in mind the date of replies, as tax law changes.
