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From the most recent testlet, the question says…
Which of the following is true about taxation of a partner in a partnership?
a. Partners must include their share of partnership capital gains as ordinary income on their personal income tax returns.
b. If a partner’s loss is limited on one tax year because of the at-risk rules, it may be carried forward to a later year, subject to that year’s at-risk
The answer is b but can please someone explain why the answer is not a?