Question

Rental income, Section 179 expense deduction, Dividend income, charitable contributions, rent expense, and foreign taxes, are all examples of separately stated items. True or false

Answer 1

Separately stated items

Each partners distributive share of the partnership's income must be reported. Code Section 702 establishes a list of items that must be separately stated at the partnership level so that their character can remain intact as the income and losses are passed through and reported at the partner level. Section 702(a) lists the following items that must be stated:

Net short-term capital gains and losses.

Net long-term capital gains and losses.

Section 1231 gains and losses,

Charitable contributions.

Dividends eligible for a dividends-received deduction.

Taxes paid to a foreign country or to a U.S. possession.

Any other items provided by the Regulations.

From the above information it is clear that the answer is true

They are separately stated items