A Partner's Tax Basis or At-Risk Amount Can Be Increased

question 9

True/False

A partner's tax basis or at-risk amount can be increased by making capital contributions, by paying off partnership debt, or by increasing the profitability of the partnership.

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Definitions:

Consistency

The quality of achieving a uniform, standard level of performance or behavior over time.

Capacity

The maximum amount that something can contain or produce, often related to production or processing facilities.

Control

In management, the process of monitoring activities to ensure they are being accomplished as planned and correcting any significant deviations.

Continuous Improvement

A persistent attempt to better products, services, or processes by achieving gradual and radical enhancements.