Which of the following statements regarding partnerships 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 2 years and carried forward 5 years.
C) Partnership losses may be carried forward indefinitely.
D) Partnership losses may be carried back 2 years and carried forward 20 years.

Question

Quizplus · Accepted Answer

If a partner is unable to use the loss that has been allocated to them, the partner can carry the loss forward indefinitely. The loss will be suspended until the partner has enough tax basis to be able to utilize the suspended loss.

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