Partnerships review

Question 1

Adjusted gross income does not include

Answer 1

cash distributions if the distributions do not exceed the partner’s tax basis in the partnership interest before distribution.

Question 2

Under the Internal Revenue Code, guaranteed payments are

Answer 2

payments to partners for services rendered or the use of capital without regard to partnership income.

Question 3

Ending capital account

Answer 3

Includes everything plus % of debt

Question 4

Ending tax basis in partnership interest

Answer 4

Includes everything + % of debt