Amber Partnership, a general partnership, has many opportunities to use special allocations. One of the special allocations

Question:

Amber Partnership, a general partnership, has many opportunities to use special allocations. One of the special allocations available to Amber is the optional adjustment-to-basis election under §§ 754 and 743 when a new partner acquires a partnership interest from an existing partner. Discuss the relevant factors that should be considered before making this election.

Partnership
A legal form of business operation between two or more individuals who share management and profits. A Written agreement between two or more individuals who join as partners to form and carry on a for-profit business. Among other things, it states...