Which of the Following Statements Regarding a Partner's Tax Basis

question 44

Multiple Choice

Which of the following statements regarding a partner's tax basis in a partnership interest is true?

• A) Partnership tax basis is increased annually by cash distributions from the partnership.
• B) Partnership tax basis is reduced by the partner's share of nondeductible partnership expenses.
• C) Partnership tax basis is reduced by the partner's share of nontaxable partnership income.
• D) Partnership tax basis becomes negative if allocable losses exceed basis.

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Definitions:

Urie Bronfenbrenner

A psychologist known for introducing the ecological systems theory to explain how the inherent qualities of a child and the characteristics of the external environment interact to influence how the child will grow and develop.

Jean Piaget

A Swiss psychologist known for his pioneering work in child development, especially his theory of cognitive development stages.

Developmental Theory

A framework for understanding how and why people change or remain the same over time, particularly from infancy through adulthood.