Question

Which of the following statements is true concerning the making of a valid section 754 election

Answer 1

Answer:option D:the election serves both to increase and reduce the basis of assets is a true statement

Explanation
Option B is false because A valid election is effective until it is revoked

Option A i s false because Secton 754 election is always valid until is it is revoked with the permission of the district directior.the district director will not allow the revocation of the election if the primary purpose is to keep from reducing the basis of assets

Option C is false as the election requires the signature of one of the partners