Nondeductible partnership items do not decrease a partner's basis in the partnership interest.

Name: Nondeductible partnership items do not decrease a partner's basis in the partnership interest.
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Question

Quizplus · Accepted Answer

Nondeductible partnership items, such as certain expenses and penalties, do decrease a partner's basis in the partnership interest, as they represent the partner's share of the partnership's expenses that cannot be deducted on the partner's individual tax return.

Nondeductible Partnership Items Do Not Decrease a Partner's Basis in the Partnership