Which of the following statements regarding the rationale for adjusting a partner's basis is false?
A) To prevent partners from being double taxed when they sell their partnership interests
B) To ensure that partnership tax-exempt income is not ultimately taxed
C) To prevent partners from being double taxed when they receive cash distributions
D)To ensure that partnership non-deductible expenses are never deductible
E)None of these

Question

Quizplus · Accepted Answer

All the statements provided are true regarding the rationale for adjusting a partner's basis. Adjustments are made to prevent double taxation, ensure tax-exempt income remains untaxed, and ensure non-deductible expenses are not deducted.

Which of the Following Statements Regarding the Rationale for Adjusting