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:

Unemployed Category

A classification used in labor statistics to describe individuals who are not currently employed but are actively seeking employment.

Not in the Labor Force

Individuals not in the labor force are those who are not seeking employment and are not currently employed, including retirees, students, and homemakers.

Employed Category

A classification within the labor force that includes all individuals who are gainfully employed, either in full-time or part-time positions.

Employed Category

A classification used in labor statistics that includes individuals who are currently working for pay or profit, or as unpaid workers in a family business.