For Partnership Form 1065, Schedule M-2, Partners Capital Accounts: We (husband & wife) contributed property, a rental house with a mortgage. It the contributed amount the cost basis minus the mortgage loan amount?

[Mike9241]

if there was prior depreciation or property was converted from personal use, then it's tax basis less mortgage. for personal use property converted to business use tax basis is the lower of it's adjusted basis or Fair Market Value on the date of conversion. for newly acquired property with no personal use you are correct cost less mortgage.