How does additional debt or relief of debt affect a partner's basis?
A) Relief of debt increases a partner's basis.
B) Debt has no effect on a partner's basis.
C) Additional debt increases a partner's basis.
D) Both additional debt and relief of debt increase a partner's basis.

Question

Quizplus · Accepted Answer

Additional debt increases a partner's basis because it is considered a contribution to the partnership, while relief of debt decreases a partner's basis as it is considered a distribution.

How Does Additional Debt or Relief of Debt Affect a Partner's