Part 1: True/False
If a partner contributes property subject to a liability to the partnership, the partner recognizes gain realized to the extent of the liability. ____
The amount a partner may deduct in the current tax year for the distributive share of partnership ordinary loss is limited to the partner’s adjusted basis in his/her interest in the partnership.____
A partner’s basis in his/her partnership interest is generally increased by the fair market value of contributed property if it is not subject to liabilities.____
Payments to partners for services customarily performed by a partner and computed by reference to partnership income are guaranteed to partners.____
Part 2: With respect to guaranteed payments,
Must it be separately stated on Form K-1? Yes/No
Is it deductible in computing ordinary income? Yes/No
Does it reduce the partner’s basis in their interest in the partnership? Yes/No
Part 3: With respect to long-term capital losses,
Must it be separately stated on Form K-1? Yes/No
Is it deductible in computing ordinary income? Yes/No
Does it reduce the partner’s basis in their interest in the partnership? Yes/No