Which of the following is a valid reason for making a 754 election?
A) A partnership can reduce its basis in assets upon cash distributions to partners.
B) Partnerships can increase, but not decrease, their basis in partnership assets.
C) Partners are able to increase their basis in the partnership interest upon the sale of a partnership interest.
D) An incoming partner pays more for a partnership interest that his or her proportionate share of partnership assets.
Correct Answer:
Verified
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