This module provides an overview of the tax rules governing contributions of property and liabilities to partnerships, including the general nonrecognition provisions and basis implications. It also introduces the concept of pre-contribution (built-in) gains. The module highlights the character rules for certain types of contributed property and the impact of liabilities on partner basis. Key anti-abuse provisions are discussed at a high level to illustrate how the rules prevent inappropriate shifting of tax consequences. Practical examples are used to reinforce how these principles apply in common partnership scenarios.