A partnership owns property that was contributed with a built$-$in loss. Two years later, it is sold at a loss. How is the loss characterized and allocated?Under $704($c$),$ built$-$in losses must be allocated entirely to the contributing partner and retain their original character $($e$.$g$.,$ capital or ordinary$).$ Correct answer:B$.$ Precontribution loss is allocated to the contributing partner and maintains its original character