Practice Quiz

FINRA Series 7

Category - Series 7

Start a Study Session Sign up for Question of the Day
Limited partnerships try to avoid recapture because:
  1. it turns potential capital gains into current taxable income
  2. it may subject the partnership to the add-on tax
  3. it increases the risk of a tax audit
  4. it always increases the investor’s tax bracket
Explanation
Answer: A - it turns potential capital gains into current taxable income. Recapture is taxed as ordinary income, not capital gain. The other choices are not true.
Was this helpful? Upvote!
Login to contribute your own answer or details
Start a Study Session Sign up for Question of the Day

Top questions

Related questions

Most popular on PracticeQuiz