Match the following independent descriptions as hot i.e., ordinary income-producing) or nonhot assets with the following statements.
-Installment receivables for sale of a capital asset.
A)Hot assets for purposes of distributions, liquidation of a partnership interest under § 736, and sale of a partnership interest.
B)May be a hot asset for some but not all the purposes stated in a).
C)Not a hot asset.

Question

Quizplus · Accepted Answer

Installment receivables for the sale of a capital asset are generally considered nonhot assets because they do not generate ordinary income but rather capital gains, which are treated differently for tax purposes.

Match the Following Independent Descriptions as Hot I