The tax basis of a partner in his/her partnership interest is used to determine:

(1) whether gains arise from distributions (or deemed distributions) of money in excess of basis (IRC 731),

(2) whether losses are recognized on certain liquidating distributions (IRC 731),

(3) basis of property (and ceiling limitations applicable thereto) attributable to property distributions (IRC 732),

(4) optional basis adjustments (IRC 734(b) and 743(b)) and

(5) loss limits (IRC 704(d)).

In addition, a partner's outside basis in his/her interest is used to:

Select one:

a.

determine gains and losses regarding sales/exchanges of the partnership interest

b.

determine gains in the context where liability relief occurs.

c.

determine the relevance of the economic sharing of profits and losses among partners and whether IRS will permit allocations to be viewed as possessing substantial economic effect or consistent with a partner's interest in the partnership.

d.

All of the above.

e.

Two of the above