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The provisions of IRC section 704(b) apply to which of the following allocation?

ID: 2618591 • Letter: T

Question

The provisions of IRC section 704(b) apply to which of the following allocation? A bottom line allocation of a partners capital account B bottom line allocation of partnership losses C income allocation of IRS audit adjustments D item allocation of partnership debt The provisions of IRC section 704(b) apply to which of the following allocation? A bottom line allocation of a partners capital account B bottom line allocation of partnership losses C income allocation of IRS audit adjustments D item allocation of partnership debt A bottom line allocation of a partners capital account B bottom line allocation of partnership losses C income allocation of IRS audit adjustments D item allocation of partnership debt

Explanation / Answer

Answer B) botton line allocation of partnership losses

The provisions of 704(b) will also apply to all allocations along with special allocations, bottom line allocation of partnership losses is one of the provision

1) botton line allocation: this is an allocation of net income or loss in the partnership for each and every item that the partner has used