Partnerships can use special allocations to shift built-in gains and built-in losses on contributed property from a partner who contributed the property to other partners.

Question

Quizplus · Accepted Answer

Special allocations cannot be used to shift built-in gains and losses on contributed property from the contributing partner to other partners, as these gains and losses must be allocated to the contributing partner under the partnership tax rules.

Partnerships Can Use Special Allocations to Shift Built-In Gains and Built-In