A Partner's Tax Basis or At-Risk Amount Can Be Increased

question 9

True/False

A partner's tax basis or at-risk amount can be increased by making capital contributions, by paying off partnership debt, or by increasing the profitability of the partnership.

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Definitions:

Negative-Feedback

A process in which increases in output lead to future decreases in the same output, stabilizing systems against fluctuations.

Aldosterone

A substance generated by the adrenal glands that plays a role in regulating blood pressure through managing the balance of sodium and water in the body.

Hypogastric Region

The lower central part of the abdomen located below the umbilical region.

Umbilicus

Also known as the navel or belly button, it is the scar on the abdomen that marks the former attachment point of the umbilical cord.