A Partnership Is Required to Make a Downward Adjustment to the Basis

question 58

True/False

A partnership is required to make a downward adjustment to the basis of its assets if a partnership interest is sold and if the total basis of partnership assets exceeds their value by more than $250,000 even if a § 754 election is not in effect.

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Definitions:

Public Purpose

This term refers to an underlying principle that government actions must serve the general interests of the community or public at large, rather than private interests.

Just Compensation

A principle requiring that when private property is taken for public use, the owner must be fairly compensated.

Trade Agreements

Contracts between two or more nations that outline how they will work together to ensure mutual benefit in trade.

Dispute Resolution

The process of resolving disputes or disagreements between parties through legal procedures or mutual agreements.