A partner's distributive share of partnership profits will increase his or her tax basis in the partnership interest.

Name: A partner's distributive share of partnership profits will increase his or her tax basis in the partnership interest.
Brand: Quizplus
Rating: 4.9 (37 reviews)

Question

Quizplus · Accepted Answer

This is true. The partner's tax basis in the partnership interest is increased by his or her share of the partnership profits. This increased tax basis can be important for determining the tax consequences of selling or disposing of a partnership interest.

A Partner's Distributive Share of Partnership Profits Will Increase His