Question: In a current (nonliquidating) distribution, loss never is recognized by the partnership. True False A partner's outside basis in a partnership will always be equal

In a current (nonliquidating) distribution, loss never is recognized by the partnership.

True False

A partner's outside basis in a partnership will always be equal to the partner's tax capital account.

True False

A trust cannot be a shareholder of an S Corporation

. True False

A partner will recognize gain when receiving a distribution of property in excess of his or her outside basis.

True False

It is possible for a partnership to use the cash method of accouting, even if one of the partners is a corporation with average anuual receipts of $28 million.

True False

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