Which of the following is false concerning special basis adjustments under Section 754?
A. Special basis adjustments can occur when a new investor purchases a partnership interest.
B. Special basis adjustments are intended to eliminate discrepancies between inside and outside bases.
C. Special basis adjustments are an annual election made by the partnership.
D. Special basis adjustments can occur when a partner recognizes a gain or loss from a distribution.
Answer: C
You might also like to view...
Mr. Allen, whose marginal tax rate is 37%, owns an office building that generates $100,000 annual taxable income. He plans to create a family partnership by giving each of his three children a 15% interest in the building. Mr. Allen will retain a 55% interest. Mr. Allen will manage the building, and receive a guaranteed payment of $20,000. If Mr. Allen's children are in the 12% tax bracket, compute the annual tax savings from this income-shifting arrangement.
A. $0 B. $11,250 C. $9,000 D. $5,000
Competitive advantage through operations can be achieved by ________, ________, and/or ________
Fill in the blanks with correct word
Long-term investments are reported in the:
A. Current asset section of the balance sheet. B. Intangible asset section of the balance sheet. C. Non-current section of the balance sheet called long-term investments. D. Equity section of the balance sheet. E. Plant assets section of the balance sheet.
An individual who owns stock in a corporations is a/an:
a. owner b. entrepreneur c. manager d. employee e. consumer