Which of the following items increases a partner's basis in his or her partnership interest?

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All of these items can increase a partner's basis in his or her partnership interest. The basis of property contributed is the initial basis for a partner's interest. Ordinary income that flows through from the partnership increases a partner's basis since it represents an increase in the partner's share of the partnership's assets. Additionally, tax-exempt income that flows through from the partnership increases a partner's basis since it is still considered income, albeit not taxable.

Which of the Following Items Increases a Partner's Basis in His