Can a profitable rental real estate condo be exchanged for an initial interest in a partnership.

It is possible and can normally be accomplished without any negative tax effects.so, in general, Yes of course; however, in general, no gain / loss will be recognized by either a partner or partnership when property is contributed to a partnership in exchange for an interest in the partnership; however, in certain circumstances , you, as a partner, must recognize gain, and if so, this gain is included in the basis of your partnership interest.