Which of the following statements about partnerships is true? A. Partnerships mu

Question

Which of the following statements about partnerships is true? A. Partnerships must file their tax returns on a calendar year basis. B.Gain is never recognized by a partner on a contribution of property to a partnership. C. No gain or loss is ever recognized in transactions between partners and a partnership. D. The partnership's basis in property contributed by a partner is equal to the fair market value of the property on the date of the transfer. E. A partner's original basis in a partnership interest is equal to the basis of the property transferred (plus cash contributed) to the partnership, adjusted for any gain recognized on the transfer and reduced for liabilities assumed by the other partners.

Explanation / Answer

E. A partner's original basis in a partnership interest is equal to the basis of the property transferred (plus cash contributed) to the partnership, adjusted for any gain recognized on the transfer and reduced for liabilities assumed by the other partners.

Related Questions

Navigate

• Browse (All)
• Browse W
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.