When Must a Partnership Make Mandatory Basis Adjustments

question 68

Multiple Choice

When must a partnership make mandatory basis adjustments?

• A) on any sale of a 20% or greater partnership interest
• B) on any sale of a partnership interest where the partnership's adjusted basis in its assets exceeds their fair market value by $250,000 or more
• C) on any sale of a partnership interest for $250,000 or more
• D) on any distribution of assets with a value of $250,000 or more

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Definitions:

Prejudice

Preconceived opinion or judgment towards people, groups, or subjects, often based on stereotypes and without factual justification.

Jealousy

A complex emotion that arises when a person perceives a threat to a valued relationship or possession, often leading to feelings of insecurity or fear of loss.

Active Listening

Listening with greater concentration, less tolerance for distractions, and more feedback to the speaker.

Tolerance

The state of needing more and more of a substance to get the desired effect.