Which of the following statements is true when property is contributed in exchange for a partnership interest? A. Any contributed property in a partnership has a carryover basis, and the character of the property is determined by the way the contributing partner used the property. B. The partnership’s inside basis is typically increased by any gain the partner recognizes from the property contribution. C. The holding period for a partner’s partnership interest depends upon the type of assets a partner contributes. D. Services are not allowed to be contributed to a partnership in return for a partnership interest. E. All of these are true.

A. This statement is partially correct. Generally, the contributed property has a carryover basis, which means it keeps its original basis from the contributing partner. However, the partnership's use of the property—rather than the use of the contributing partner—determines the property's character.

B. This statement is incorrect. Any gain a partner recognizes from the contributed property does not raise the carryover basis of the contributed property, which serves as the partnership's inside basis.

C. This statement is true. Depending on the sort of asset given, a partner's partnership stake may have a holding period. The holding time of the partnership interest includes the contributed asset's holding period whether a partner contributes a capital asset or a Section 1231 asset. When a partner makes a cash or non-capital asset contribution, the holding period begins on the contribution date.

D. The statement is incorrect. Services might be given to the partnership in return for a partnership interest. On the other hand, regular income is applied to the fair market value of the partnership stake that was obtained in return for services.

E. Since some of the above statements are untrue, this statement is incorrect.

Therefore, the answer is C.