Which of the Following Special Allocations Are Mandatory for the Partners

question 150

Multiple Choice

Which of the following special allocations are mandatory for the partners in a partnership?

• A) Section 704(a) special allocation requiring limited partners to share losses in accordance with their capital interests in the partnership.
• B) Section 704(c) special allocation for the difference between the adjusted basis and fair market value of contributed property.
• C) Section 734 (optional adjustment to basis) special allocation for distributions to partners when the partnership does have a § 754 election in effect or does make a § 754 election.
• D) Only b. and c. are mandatory.
• E) a., b., and c. are mandatory.