An Additional Allocation of Partnership Debt or Relief of Partnership

question 94

True/False

An additional allocation of partnership debt or relief of partnership debt is considered to be a deemed cash contribution or cash distribution, respectively.

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Definitions:

Exception

A provision in tax law or regulation that allows individuals or entities to be exempt from the usual application of a rule under specified conditions.

Student Loan Interest

The cost of borrowing money for education, which can be claimed as a deduction to reduce taxable income, subject to certain limits.

Full-time

Typically refers to employment or student status that meets a minimum number of hours defined by an employer or educational institution.

Self-employment Tax

A levy aimed at self-employed individuals, designed to contribute towards Social Security and Medicare.