Multiple Choice
Which of the following statements regarding the Section 754 adjustment is incorrect?
A) Sec.754 permits a basis adjustment to partnership assets upon the sale of a partnership interest.
B) Sec.754 permits a basis adjustment to partnership assets upon certain distributions.
C) The Sec.754 election is made annually by the partnership.
D) The Sec.754 election is intended to prevent inequities that may occur when the bases of partnership assets are not adjusted.
Correct Answer:
Verified
Correct Answer:
Verified
Q13: How does an electing large partnership differ
Q39: Oliver receives a nonliquidating distribution of land
Q47: Many professional service partnerships have adopted the
Q56: All of the following are requirements to
Q69: Stephanie owns a 25% interest in a
Q81: All costs of organizing a partnership can
Q82: Emma contributes property having a $24,000 FMV
Q89: George transferred land having a $170,000 FMV
Q125: Limited liability of partners or members is
Q1594: Discuss how the partnership form of organization