Choose the Correct Statement

question 8

Multiple Choice

Choose the correct statement.

• A)Qualified nonrecourse debt on real estate is considered an amount that is at risk.
• B)Any partnership losses not allowed in the current year may be carried back 2 years and forward 5 years.
• C)Nonrecourse debt is debt for which a taxpayer is personally liable.
• D)In general,partners are allowed losses from a business activity equal to their cash and property contributions,plus any profit retained in the business less any liabilities for which the taxpayer is personally liable.

---

Definitions:

Time Intervals

Periods or durations between two points or events in time.

Amortized Loan

A loan with scheduled periodic payments that include both principal and interest.

Annuity

A financial product that pays out a fixed stream of payments to an individual, typically used as part of retirement planning.

Loan Payments

Loan payments are periodic payments made by a borrower to a lender, consisting of both principal and interest, to repay a loan.