Which of the following statements regarding partnership losses suspended by the tax basis limitation is true?
A)Partnership losses must be used only in the year the losses are created.
B)Partnership losses may be carried back two years and carried forward five years.
C)Partnership losses may be carried forward indefinitely.
D)Partnership losses may be carried back two years and carried forward 20 years.

Question

Quizplus · Accepted Answer

Partnership losses suspended by the tax basis limitation may be carried forward indefinitely. They cannot be carried back, and there is no time limit on the carryforward period.

Which of the Following Statements Regarding Partnership Losses Suspended by the Tax