True False -1. It is possible for a business to be taxed as a partnership even though one of its partners is a corporation. 2 General partnerships are owned solely by two or more general partners, and limited A limit limited partnership. partnerships are owned solely by two or more limited partners ed partner, by definition, may not participate in the management of the 4. A contributing partner's holding period for an interest in a partnership begins on the date the partnership interest is acquired When a partner's share of debt is decreased, the reduction is treated as a cash 6 The contribution of depreciated property in a tax-free exchange for a partnershi 5. distribution from the partnership to the partner. interest does not trigger the $ 1245 or 1250 depreciation recapture provisions. An individual who contributes services in exchange for an unrestricted capital interest in a partnership has includible ordinary income equal to the fair market value of the capital interest. 7 8. Organization costs of a partnership can be deducted when incurred or paid, or they can be amortized on a straight-line basis over a period not to exceed 60 months, provided the partnership files the proper election. 9. A guaranteed payment from a partnership always represents current ordinary income to the recipient partner