Which of the Following Statements Regarding Partnerships Losses Suspended by the Tax

question 3

Multiple Choice

Which of the following statements regarding partnerships losses suspended by the tax basis limitation is true?

• A)Partnership losses must be used only in the year the losses are created.
• B)Partnership losses may be carried back 2 years and carried forward 5 years.
• C)Partnership losses may be carried forward indefinitely.
• D)Partnership losses may be carried back 2 years and carried forward 20 years.

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