Which of the Following Is a Correct Definition of a Concept

question 161

Multiple Choice

Which of the following is a correct definition of a concept related to partnership taxation?

• A)The aggregate concept treats partners and partnerships as separate units and gives the partnership its own tax "personality."
• B)A partner's capital sharing ratio is defined as the percent of partnership assets (capital) that would be allocated to the partner upon liquidation of the partnership.
• C)The partnership's outside basis is defined as the sum of each partner's capital account balance.
• D)A special allocation is defined as an amount that could differently affect the tax liabilities of two or more partners.

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Definitions:

Johnson Amendment

A provision in U.S. tax code prohibiting 501(c)(3) nonprofit organizations from endorsing or opposing political candidates.

Internal Revenue Code

A comprehensive, codified set of laws that govern federal tax administration in the United States.

Political Activity

Actions or efforts aimed at influencing government policy or the election of candidates for political office.

House Rule 25

A specific regulation or policy within an organization or institution, often relating to governance or operational procedures, though the content can vary widely depending on the context.