Identified which of these Partnership Characteristics are True or False

1. A partner's basis for his partnership interest can be negative 

2. A partnership exists as long as there are at least two individuals or entities engaged in the active conduct of a trade or business or a financial operation, and the business is not a trust or a corporation 

3. For federal income tax purposes, formation of a partnership is governed by Sec 721 

4. Although a partner's basis in the partnership cannot go below zero, a partner's book capital account (equity) may be negative

5. A large partnership must not be a service partnership, must not be engaged in commodity trading and is subject to a different system of audits

6. A partnership cannot have an NOL carryback or carryforward

7. The definition of a partnership include a syndicate, a group, a pool

8. Formation of a partnership requires legal documentation to be filed 

9. A limited partnership cannot have a corporate general partner

10. Choose An individual engaged in the active conduct of a business must elect not to be taxed as a partnership Answer 10 Choose All of the partners in a limited partnership have limited liability

11. The amount and character of any gains losses are determined at the partnership level

12. A partner's relief of debt is treated as if the partner receives a cash distribution

13. a limited partnership must have at least two general partners

Answer rating: 100% (QA)

False A partner s basis for his partnership interest includes the amount of money that he has invested in the partnership as well as any debt that the partnership has incurred 2FALSE A partnership exi... View the full answer