What Is the Difference Between a Partner's Tax Basis and At-Risk

question 96

Essay

What is the difference between a partner's tax basis and at-risk amount?

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Definitions:

Simple Interest

A method of calculating interest where the interest charge is based only on the original principal, not on the interest which has been added over time.

Annual Rate

The interest rate for a period of one year.

T-Bill

A short-term government debt obligation backed by the Treasury Department of a country with a maturity of less than one year.

Interest Rate

The percentage of a sum of money charged for its use, typically expressed as an annual rate.