Which of the following statements regarding partnerships losses suspended by the tax basis limitation is true?
A) Partnership losses may be carried back 2 years and carried forward 5 years.
B) Partnership losses must be used only in the year the losses are created.
C) Partnership losses may be carried back 2 years and carried forward 20 years.
D) Partnership losses may be carried forward indefinitely.

Question

Quizplus · Accepted Answer

Partnership losses that are suspended due to the tax basis limitation can be carried forward indefinitely until the partner has sufficient basis to utilize the losses.

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