Question

Identify which of the following statements is true. The Hunter Partnership has a net long-term capital gain of $4,000 and a net short-term capital loss of $1,000 for the current tax year. The gain and loss will be netted and the partners will include their proportionate share of the $3.000 net long-term capital gain on their return The Right Partnership sells a delivery truck and recognizes a gain of $2,000, which represents depreciation recaptured under Sec. 1245. The $2,000 gain will retain its identity as a separately stated item. For tax purposes, the partnership takes a carryover basis in the contributed property that references the contributing partner's basis. All of the above are false he Right Partnershonale share of the $argain and loss will be notind a net short-term cani

Answer 1

The correct answer is (d) because all the above statements are false since short term capital loss cannot be set off against long term capital gain and also depreciation recaptured cannot treated as gain and for tax purpose carryover basis in contributed property is not taken.