A Partner's Basis in the Partnership Interest Is Increased by His

question 136

True/False

A partner's basis in the partnership interest is increased by his or her share of the tax-exempt income received by the partnership.

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Definitions:

Under Seal

A formal legal expression indicating that a document's signature has been affixed in a formal manner, typically making the document legally binding and more difficult to revoke.

Consideration

The value (such as money, a service, or an item) promised in a contract that motivates the parties to enter into the agreement.

Negotiations

The process by which two or more parties communicate and compromise to reach a mutual agreement or resolve a dispute.

Revoked

The act of officially canceling or withdrawing something, such as a license, permission, or offer.