A Partner's Tax Basis in a Partnership Is Comprised of Which

question 48

Multiple Choice

A partner's tax basis in a partnership is comprised of which of the following items?
I.The partner's tax basis of assets contributed to the partnership.
II.The amount of the partner's liabilities assumed by the other partners.
III.The partner's share of other partners' liabilities assumed by the partnership.

• A)I plus II minus III
• B)I plus II plus III
• C)I minus II plus III
• D)I minus II minus III

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Definitions:

Family Farmer

A designation used in bankruptcy law for a farmer or fisherman with regular annual income that allows them to adjust debts under Chapter 12.

Debt Cap

A limit set on the amount of debt that an organization or government may incur.

Congress

The national legislative body of the United States, consisting of the Senate and the House of Representatives.

Chapter 13

A form of bankruptcy in the United States that allows individuals with a regular income to develop a plan to repay all or part of their debts.