When a capital property is transferred from an existing partnership to a new partnership, any capital gain or recapture from the disposition will be recorded as income of the existing partnership.

Question

Quizplus · Accepted Answer

When a capital property is transferred from an existing partnership to a new partnership, the capital gain or recapture is typically deferred, and not immediately recorded as income of the existing partnership, depending on the jurisdiction and specific tax rules.

When a Capital Property Is Transferred from an Existing Partnership