Multiple Choice
A partnership may make an optional election to adjust the basis of its property on a distribution to a partner which liquidates the partner's entire interest in the partnership. If such an election is in effect, the partnership:
A) Generally applies the election to transfers that take place at any later date, unless the election is revoked.
B) Only adjusts the basis of its property for differences in basis between that of the partnership and a distributee partner if a transferor-transferee situation arises within two years after the distribution.
C) Increases the basis of similar retained assets when a distributee partner takes a basis which is greater than the partnership's basis in these assets, assuming the partnership does not have any receivables or inventory.
D) Decreases the basis of similar retained assets when a distributee partner takes a basis for the distributed assets which is less than the partnership's basis in these assets.
E) All of the above.
Correct Answer:

Verified
Correct Answer:
Verified
Q3: Several years ago, the Jaymo Partnership purchased
Q5: Megan's basis was $100,000 in the MAR
Q6: Mike contributed property to the MDB Partnership
Q8: Brittany, Jennifer, and Daniel are equal partners
Q11: Martin has a basis in a partnership
Q25: Jared owns a 40% interest in the
Q31: The LMO Partnership distributed $30,000 cash to
Q36: Which of the following statements, if any,
Q131: Tyler's basis in his partnership interest is
Q175: For Federal income tax purposes, a distribution