[
  {
    "Question": "What is the primary tax form used by partnerships to report income, deductions, gains, and losses to the IRS?",
    "Answer": "B",
    "Explanation": "Partnerships use Form 1065 to report their financial information to the IRS. This form is informational and does not pay tax itself; instead, income passes through to partners.",
    "PictureURL": "https://upload.wikimedia.org/wikipedia/commons/3/3a/IRS_Logo.svg",
    "OptionA": "Form 1120",
    "OptionB": "Form 1065",
    "OptionC": "Form 1040",
    "OptionD": "Form 941",
    "OptionE": "",
    "OptionF": "",
    "OptionG": "",
    "TestName": "Federal Taxation - Partnerships",
    "Content Type": "Practice Test",
    "Title": "Partnership Taxation Basics",
    "Item": 1,
    "Type": "multiple choice",
    "Path": "Federal Taxation/Partnerships"
  },
  {
    "Question": "How is income from a partnership generally taxed to the partners?",
    "Answer": "C",
    "Explanation": "Partnership income is passed through to partners and taxed on their individual returns, avoiding double taxation at the entity level.",
    "PictureURL": "",
    "OptionA": "Taxed at the partnership level only",
    "OptionB": "Taxed twice, at partnership and partner levels",
    "OptionC": "Passed through and taxed on partners' individual returns",
    "OptionD": "Not taxed at all",
    "OptionE": "",
    "OptionF": "",
    "OptionG": "",
    "TestName": "Federal Taxation - Partnerships",
    "Content Type": "Practice Test",
    "Title": "Taxation of Partnership Income",
    "Item": 2,
    "Type": "multiple choice",
    "Path": "Federal Taxation/Partnerships"
  },
  {
    "Question": "Which of the following best describes a 'guaranteed payment' to a partner?",
    "Answer": "A",
    "Explanation": "Guaranteed payments are payments to partners for services or use of capital that are made regardless of partnership income and are deductible by the partnership.",
    "PictureURL": "",
    "OptionA": "A payment made to a partner regardless of partnership income",
    "OptionB": "A distribution of profits to a partner",
    "OptionC": "A loan from the partnership to a partner",
    "OptionD": "A capital contribution by a partner",
    "OptionE": "",
    "OptionF": "",
    "OptionG": "",
    "TestName": "Federal Taxation - Partnerships",
    "Content Type": "Practice Test",
    "Title": "Guaranteed Payments",
    "Item": 3,
    "Type": "multiple choice",
    "Path": "Federal Taxation/Partnerships"
  },
  {
    "Question": "When a partner contributes property to a partnership, what is generally the partner's basis in the partnership interest received?",
    "Answer": "D",
    "Explanation": "The partner's basis in the partnership interest is generally the adjusted basis of the property contributed, increased by any gain recognized and decreased by liabilities assumed by the partnership.",
    "PictureURL": "",
    "OptionA": "Fair market value of the property contributed",
    "OptionB": "Zero",
    "OptionC": "Partnership's basis in the property",
    "OptionD": "Adjusted basis of the property contributed",
    "OptionE": "",
    "OptionF": "",
    "OptionG": "",
    "TestName": "Federal Taxation - Partnerships",
    "Content Type": "Practice Test",
    "Title": "Partner's Basis on Contribution",
    "Item": 4,
    "Type": "multiple choice",
    "Path": "Federal Taxation/Partnerships"
  },
  {
    "Question": "What is the term for the partner's share of partnership liabilities that increases their basis in the partnership?",
    "Answer": "B",
    "Explanation": "A partner's share of partnership liabilities increases their basis because they are considered to have an economic investment in the partnership equal to their share of liabilities.",
    "PictureURL": "",
    "OptionA": "Capital account",
    "OptionB": "At-risk basis",
    "OptionC": "Recourse debt",
    "OptionD": "Distributive share",
    "OptionE": "",
    "OptionF": "",
    "OptionG": "",
    "TestName": "Federal Taxation - Partnerships",
    "Content Type": "Practice Test",
    "Title": "Partner's Basis and Liabilities",
    "Item": 5,
    "Type": "multiple choice",
    "Path": "Federal Taxation/Partnerships"
  },
  {
    "Question": "Which of the following is NOT a characteristic of a partnership for federal tax purposes?",
    "Answer": "D",
    "Explanation": "A partnership is not a separate taxable entity; it is a pass-through entity where income is taxed at the partner level, not at the partnership level.",
    "PictureURL": "",
    "OptionA": "Pass-through taxation",
    "OptionB": "Partners report income on individual returns",
    "OptionC": "Partnership files an informational return",
    "OptionD": "Partnership pays federal income tax directly",
    "OptionE": "",
    "OptionF": "",
    "OptionG": "",
    "TestName": "Federal Taxation - Partnerships",
    "Content Type": "Practice Test",
    "Title": "Partnership Tax Characteristics",
    "Item": 6,
    "Type": "multiple choice",
    "Path": "Federal Taxation/Partnerships"
  },
  {
    "Question": "How are losses from a partnership generally treated for tax purposes by the partners?",
    "Answer": "A",
    "Explanation": "Losses flow through to partners and can offset other income, but only to the extent of the partner's basis and at-risk amount.",
    "PictureURL": "",
    "OptionA": "Passed through to partners and limited by basis and at-risk rules",
    "OptionB": "Deducted by the partnership before distribution",
    "OptionC": "Carried forward by the partnership",
    "OptionD": "Not deductible by partners",
    "OptionE": "",
    "OptionF": "",
    "OptionG": "",
    "TestName": "Federal Taxation - Partnerships",
    "Content Type": "Practice Test",
    "Title": "Treatment of Partnership Losses",
    "Item": 7,
    "Type": "multiple choice",
    "Path": "Federal Taxation/Partnerships"
  },
  {
    "Question": "What is the effect on a partner's basis when the partnership distributes cash to that partner?",
    "Answer": "B",
    "Explanation": "Cash distributions reduce a partner's basis in the partnership interest but do not create taxable income unless the distribution exceeds the partner's basis.",
    "PictureURL": "",
    "OptionA": "Increase basis",
    "OptionB": "Decrease basis",
    "OptionC": "No effect on basis",
    "OptionD": "Creates taxable income",
    "OptionE": "",
    "OptionF": "",
    "OptionG": "",
    "TestName": "Federal Taxation - Partnerships",
    "Content Type": "Practice Test",
    "Title": "Cash Distributions and Basis",
    "Item": 8,
    "Type": "multiple choice",
    "Path": "Federal Taxation/Partnerships"
  },
  {
    "Question": "Which of the following statements about partnership allocations is true?",
    "Answer": "C",
    "Explanation": "Allocations of income, gain, loss, deduction, or credit must have substantial economic effect according to IRS rules to be respected for tax purposes.",
    "PictureURL": "",
    "OptionA": "Allocations can be made arbitrarily without IRS scrutiny",
    "OptionB": "Allocations must be equal among partners",
    "OptionC": "Allocations must have substantial economic effect",
    "OptionD": "Allocations are ignored for tax purposes",
    "OptionE": "",
    "OptionF": "",
    "OptionG": "",
    "TestName": "Federal Taxation - Partnerships",
    "Content Type": "Practice Test",
    "Title": "Partnership Allocations",
    "Item": 9,
    "Type": "multiple choice",
    "Path": "Federal Taxation/Partnerships"
  },
  {
    "Question": "What is the deadline for a partnership to file Form 1065 for a calendar year partnership?",
    "Answer": "D",
    "Explanation": "Form 1065 is due by March 15th following the end of the calendar year, or the 15th day of the third month after the close of the fiscal year.",
    "PictureURL": "",
    "OptionA": "April 15th",
    "OptionB": "January 31st",
    "OptionC": "February 28th",
    "OptionD": "March 15th",
    "OptionE": "",
    "OptionF": "",
    "OptionG": "",
    "TestName": "Federal Taxation - Partnerships",
    "Content Type": "Practice Test",
    "Title": "Filing Deadline for Partnerships",
    "Item": 10,
    "Type": "multiple choice",
    "Path": "Federal Taxation/Partnerships"
  },
  {
    "Question": "Which of the following is true regarding self-employment tax and partnership income?",
    "Answer": "A",
    "Explanation": "General partners pay self-employment tax on their distributive share of partnership income, while limited partners generally do not pay self-employment tax on their share of income.",
    "PictureURL": "",
    "OptionA": "General partners pay self-employment tax on partnership income",
    "OptionB": "Limited partners pay self-employment tax on all income",
    "OptionC": "Partnership income is exempt from self-employment tax",
    "OptionD": "Only guaranteed payments are subject to self-employment tax",
    "OptionE": "",
    "OptionF": "",
    "OptionG": "",
    "TestName": "Federal Taxation - Partnerships",
    "Content Type": "Practice Test",
    "Title": "Self-Employment Tax and Partnerships",
    "Item": 11,
    "Type": "multiple choice",
    "Path": "Federal Taxation/Partnerships"
  },
  {
    "Question": "What is the term for the partner's share of partnership income, gain, loss, deduction, or credit as reported on Schedule K-1?",
    "Answer": "B",
    "Explanation": "Schedule K-1 reports each partner's distributive share of partnership items for inclusion on their individual tax returns.",
    "PictureURL": "",
    "OptionA": "Guaranteed payment",
    "OptionB": "Distributive share",
    "OptionC": "Capital contribution",
    "OptionD": "Basis adjustment",
    "OptionE": "",
    "OptionF": "",
    "OptionG": "",
    "TestName": "Federal Taxation - Partnerships",
    "Content Type": "Practice Test",
    "Title": "Schedule K-1 and Partner Shares",
    "Item": 12,
    "Type": "multiple choice",
    "Path": "Federal Taxation/Partnerships"
  },
  {
    "Question": "If a partner sells their partnership interest, how is the gain or loss generally characterized?",
    "Answer": "C",
    "Explanation": "Gain or loss on the sale of a partnership interest is generally treated as capital gain or loss, except for certain hot assets which may generate ordinary income.",
    "PictureURL": "",
    "OptionA": "Ordinary income",
    "OptionB": "Dividend income",
    "OptionC": "Capital gain or loss",
    "OptionD": "Tax-exempt income",
    "OptionE": "",
    "OptionF": "",
    "OptionG": "",
    "TestName": "Federal Taxation - Partnerships",
    "Content Type": "Practice Test",
    "Title": "Sale of Partnership Interest",
    "Item": 13,
    "Type": "multiple choice",
    "Path": "Federal Taxation/Partnerships"
  },
  {
    "Question": "What is the effect on a partner's basis when the partnership assumes a liability of the partner?",
    "Answer": "A",
    "Explanation": "When a partnership assumes a partner's liability, the partner's basis in the partnership decreases because the partner is relieved of that debt.",
    "PictureURL": "",
    "OptionA": "Partner's basis decreases",
    "OptionB": "Partner's basis increases",
    "OptionC": "No effect on basis",
    "OptionD": "Creates taxable income",
    "OptionE": "",
    "OptionF": "",
    "OptionG": "",
    "TestName": "Federal Taxation - Partnerships",
    "Content Type": "Practice Test",
    "Title": "Liability Assumption and Basis",
    "Item": 14,
    "Type": "multiple choice",
    "Path": "Federal Taxation/Partnerships"
  },
  {
    "Question": "Which of the following best describes a 'limited partner' in a partnership?",
    "Answer": "D",
    "Explanation": "A limited partner typically has limited liability and does not participate in the day-to-day management of the partnership.",
    "PictureURL": "",
    "OptionA": "A partner with unlimited liability and management control",
    "OptionB": "A partner who guarantees partnership debts",
    "OptionC": "A partner who is personally liable for all partnership obligations",
    "OptionD": "A partner with limited liability and no management authority",
    "OptionE": "",
    "OptionF": "",
    "OptionG": "",
    "TestName": "Federal Taxation - Partnerships",
    "Content Type": "Practice Test",
    "Title": "Limited Partner Characteristics",
    "Item": 15,
    "Type": "multiple choice",
    "Path": "Federal Taxation/Partnerships"
  }
]