Match the term with the entity to which it applies.
-Owner basis adjusted for liabilities
A)Sole Proprietorship.
B)Partnership.
C)Corporation.
D)S Corporation.

Question

Quizplus · Accepted Answer

The term "owner basis adjusted for liabilities" applies to a partnership. In a partnership, each partner's basis in the partnership is adjusted by their share of the partnership's liabilities. This concept is crucial for understanding how much of the partnership's debt and income each partner is responsible for on their taxes.

Match the Term with the Entity to Which It Applies