Detailed Answer
(c) The requirement is to determine the correct statement
regarding the holding period for a partnership interest acquired
in exchange for a contributed capital asset. The holding
period for a partnership interest that is acquired through a contribution
of property depends upon the nature of the contributed
property. If the contributed property was a capital asset or
Sec. 1231 asset to the contributing partner, the holding period of
the acquired partnership interest includes the period of time that
the capital asset or Sec. 1231 asset was held by the partner. For
all other contributed property, a partner’s holding period for a
partnership interest begins when the partnership interest is acquired