Which of the following is not an adjustment to the partners' basis in the partnership interest?
A) Increased by contributions the partner made to the partnership.
B) Decreased by the amount of guaranteed payments the partner received from the partnership.
C) Increased by the partner's share of tax-exempt income.
D) Decreased by any decrease in the partner's share of partnership liabilities.
E) Increased by the partner's share of separately stated income items.

Question

Quizplus · Accepted Answer

Guaranteed payments are not an adjustment to the partner's basis in the partnership interest; they are treated as ordinary income to the partner and do not affect the basis.

Which of the Following Is Not an Adjustment to the Partners