Which of the following items will affect a partner's tax basis?
A) Share of ordinary business income (loss)
B) Share of nonrecourse debt
C) Share of recourse debt
D)Share of qualified nonrecourse debt
E)All of these will affect a partner's tax basis

Question

Quizplus · Accepted Answer

All of the listed items will affect a partner's tax basis. 
- Share of ordinary business income (loss) will increase or decrease the partner's tax basis depending on whether the partnership had a net income or loss during the period. 
- Share of nonrecourse debt will increase the partner's tax basis, as they are not personally liable for the debt. 
- Share of recourse debt will increase the partner's tax basis only to the extent that they are personally liable for the debt. 
- Share of qualified nonrecourse debt will increase the partner's tax basis, but only up to the amount that the partner is at risk for.

Which of the Following Items Will Affect a Partner's Tax