A Partnership Is Required to Make a Downward Adjustment to the Basis

question 58

True/False

A partnership is required to make a downward adjustment to the basis of its assets if a partnership interest is sold and if the total basis of partnership assets exceeds their value by more than $250,000 even if a § 754 election is not in effect.

---

Definitions:

Regulatory Capture

The situation that occurs when a governmental regulatory agency ends up being controlled by the industry that it is supposed to be regulating.

Automobile Safety

Measures and standards implemented to ensure the safety of vehicles and protect passengers and pedestrians from accidents and injuries.

Fuel Requirements

Specifications or standards that determine the type and quality of fuel necessary for a particular vehicle, engine, or system to operate efficiently.

Limited and Bundled Choices

This term refers to a marketing and sales strategy where consumers are offered packages or bundles of goods or services with few alternatives, limiting their choices to predetermined sets.