A Partnership Will Take a Carryover Basis in an Asset

question 97

Multiple Choice

A partnership will take a carryover basis in an asset it acquires when:

• A)The partnership acquires the asset through a § 1031 like-kind exchange.
• B)A partner owning 25% of partnership capital and profits sells the asset to the partnership.
• C)The partnership acquires the asset from a partner as a contribution to partnership capital under § 721(a).
• D)The partnership leases the asset from a partner on a one-year lease.
• E)None of the above.

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Definitions:

Fines

Monetary penalties imposed by an authority as punishment for violations of legal or regulatory standards.

Congress

The national legislative body of a country, particularly in the United States, responsible for making laws and comprising two houses: the Senate and the House of Representatives.

Sherman Antitrust Act

A landmark federal statute in the U.S. that prohibits monopolistic business practices, aimed at promoting fair competition for the benefit of consumers.

Monopoly

Monopoly describes the economic condition where one seller dominates the entire market, thus setting prices and product availability without competition.