When Must a Partnership Make Mandatory Basis Adjustments

question 29

Multiple Choice

When must a partnership make mandatory basis adjustments?

• A)on any sale of a 20% or greater partnership interest
• B)on any sale of a partnership interest for $250,000 or more
• C)on any distribution of assets with a value of $250,000 or more
• D)on any sale of a partnership interest where the partnership's adjusted basis in its assets exceeds their fair market value by $250,000 or more

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Definitions:

Coastal Accumulations

The build-up of sedimentary materials, such as sand and gravel, along coastlines due to oceanic and tidal movements.

Shallow

relating to an area of water that is not deep.

Narrow Islands

Long, slim landforms surrounded by water, often formed by volcanic activity or the buildup of sediment.

Clasts

Fragments or grains of mineral or rock detached from its original position and included within another rock.