Which of the following does not adjust a partner's basis?
A)Ordinary business income (loss)
B)Change in amount of partnership debt
C)Tax-exempt income
D)All of these choices adjust a partner's basis.

Question

Quizplus · Accepted Answer

All of the listed items (ordinary business income or loss, change in the amount of partnership debt, and tax-exempt income) do adjust a partner's basis in the partnership. Ordinary business income increases basis, losses and distributions decrease basis, an increase in a partner's share of partnership debt increases their basis, and tax-exempt income also increases a partner's basis.

Which of the Following Does Not Adjust a Partner's Basis