In a proportionate nonliquidating distribution, cash is deemed to be distributed first, followed by unrealized receivables and inventory and, last, capital and other assets.

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In a proportionate nonliquidating distribution, cash is generally distributed first, followed by unrealized receivables and inventory, and then by capital and other assets. This is because cash is the most liquid asset that can be easily distributed among the partners. Unrealized receivables and inventory are also relatively liquid, as they can be converted into cash quickly. Capital and other assets, such as equipment or real estate, are typically the least liquid and may take more time to distribute or sell.

In a Proportionate Nonliquidating Distribution, Cash Is Deemed to Be