Match the following independent distribution payments in liquidation of a partner's interest in an ongoing partnership with the statements below.
-Distribution of $100,000 cash representing the partner's share of the value of partnership equipment that has potential depreciation recapture of $25,000.
A)A payment for the partner's share of partnership income under § 736a).
B)A payment for the partner's share of partnership property under § 736b).
C)The payment includes both a § 736a) and a § 736b) element.

Question

Quizplus · Accepted Answer

This distribution is considered a payment for the partner's share of partnership property under § 736(b) because it represents the partner's share of the value of a specific partnership asset (equipment) rather than a share of partnership income or guaranteed payments for services or capital.

Match the Following Independent Distribution Payments in Liquidation of a Partner's