Harry's Basis in His Partnership Interest Was $10,000 at the Beginning

question 31

True/False

Harry's basis in his partnership interest was $10,000 at the beginning of the tax year. For the year, his share of the partnership's loss was $8,000, and he also received a distribution of $4,000. Harry can deduct an $8,000 loss, and he recognizes a gain of $2,000 on the distribution of cash in excess of his remaining basis.

---

Definitions:

Wrong Words

Wrong Words describes instances where inappropriate, incorrect, or unintended words are used in communication.

Speaking Fluently

The ability to express oneself easily and articulately in spoken language.

Gray Matter

The darker colored regions of the brain and spinal cord, primarily composed of neuron cell bodies and branches.

White Matter

Brain tissue composed of myelinated nerve fibers that transmit signals throughout the brain and to the spinal cord, facilitating communication between different brain regions.