A Partnership Will Take a Carryover Basis in an Asset

question 159

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 leases the asset from a partner on a one-year lease.
• D) The partnership acquires the asset from a partner as a contribution to partnership capital under § 721(a).
• E) None of the above? the partnership always takes a substituted basis in the assets it receives.

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Definitions:

Medical Recommendations

Advice or guidelines issued by healthcare professionals based on medical evidence to improve patient health and prevent disease.

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The specific criteria or conditions that must be met for a doctor to prescribe medication or treatment to a patient.

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A mental framework that forecasts and elucidates health behaviors through concentrating on people's attitudes and beliefs.

Smoking Cessation

The process of discontinuing tobacco smoking, which can significantly reduce the risks of smoking-related diseases.