A Partner's Basis Is Increased by the Amount of Deductible

question 85

True/False

A partner's basis is increased by the amount of deductible loss that flows through from the partnership.

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Definitions:

Specific Performance

A legal remedy where a court orders a party to perform a specific act, usually indicated in a contract, as opposed to awarding damages.

Consequential Damages

Losses that do not flow directly from an act but only from some of the consequences or results of such act.

Breach of Warranty

A violation of the promises or guarantees made about the quality, condition, or performance of a product or service.

Seek Cover

The act of attempting to find a substitute transaction or solution, typically in the context of a failed contract or transaction.