Which of the Following Statements Regarding Partnership Losses Suspended by the Tax

question 63

Multiple Choice

Which of the following statements regarding partnership losses suspended by the tax basis limitation is true?

• A)Partnership losses must be used only in the year the losses are created.
• B)Partnership losses may be carried back two years and carried forward five years.
• C)Partnership losses may be carried forward indefinitely.
• D)Partnership losses may be carried back two years and carried forward 20 years.

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Definitions:

Precognition

The purported ability to foresee or have knowledge of future events before they occur.

Clairvoyance

The purported power to gather data about an object, a person, a location, or a physical happening through the use of extrasensory perception, bypassing traditional sensory channels.

Telepathy

The supposed communication of thoughts or ideas by means other than the known senses.

Psychokinesis

The purported skill to shift items solely through mental concentration.