A § 754 Election Is Made for a Tax Year

question 47

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 basis in distributed property is increased or decreased from the inside basis the partnership held in those assets.The election is made by a partner any time it is necessary to adjust his or her share of the inside basis of partnership assets.

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Definitions:

Scatter Diagram

A graph used in statistics to visually display and assess the possible relationship between two numerical variables.

Visual Line Fit

A method in statistical analysis where a line is visually fitted to a set of data points to assess a potential relationship.

Scatter Diagrams

are graphical representations used in statistics to show the relationship between two variables, displaying data points on a two-dimensional plot.

Vertical Axis

A line on a graph that represents the range of values for a certain variable, typically found on the left side of a chart.