(b) The requirement is to determine the holding period
for property acquired by a partnership as a contribution to the
contributing partnerís capital account. Generally no gain or loss
is recognized on the contribution of property to a partnership in
exchange for a capital interest. Since the partnershipís basis for
the contributed property is determined by reference to the contributing
partnerís former basis for the property (i.e., a transferred basis), the partnershipís holding period includes the period during which the property was held by the contributing partner.