A § 754 Election Is Made for a Tax Year

question 54

True/False

A § 754 election is made for a tax year in which the partner recognizes gain or loss on a distribution from the partnership or the distributee partner's basis in distributed property is increased or decreased from the inside basis the partnership held in those assets. The election is made by the partnership each year in which it is necessary to
adjust a partner's share of the inside basis of partnership assets; in a year in which an unfavorable result would arise, the partnership can forgo making the election.

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A forecasting method that relies on expert judgments and non-quantifiable information to predict future outcomes.

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