Part 1: True/False If a partner contributes property subject to a liability to the partnership, the partner recognizes gain realized to the extent of the liability. ____ The amount a partner may deduct in the current tax year for the distributive share of partnership ordinary loss is limited to the partner Solution Part 1: True/False If a partner contributes property subject to a liability to the partnership, the partner recognizes gain realized to the extent of the liability. ____ Solution- True ( If a partner contributes property subject to a liability to the partnership, the partner recognizes gain realized to the extent of the amount of the liability does not exceed the fair market value of the property at the time of the contribution) The amount a partner may deduct in the current tax year for the distributive share of partnership ordinary loss is limited to the partner .