_____ When a partnership borrows money from a financial institution, the effect on the tax basis of each of the partners is

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When a partnership borrows money, the borrowed amount is considered an increase in the partnership's capital, which in turn increases each partner's tax basis in the partnership. This is because the liability increases the partnership's basis, and this increase is allocated among the partners according to their share in the partnership.

_____ When a Partnership Borrows Money from a Financial Institution