A Nonliquidating Distribution of Cash or Property from the Partnership

question 135

True/False

A nonliquidating distribution of cash or property from the partnership to a partner is generally treated as a tax-free return of capital to the extent of a partner's basis.

---

Definitions:

Mechanical Brake Linkages

Components that mechanically connect the brake pedal to the brake mechanism, enabling the transfer of force from the pedal to the brakes.

1930s

A decade characterized by the Great Depression, major economic downturns, and significant advancements in technology and culture.

Non-servo

Relates to a system or mechanism that does not use servos or automatic feedback for control, often relying on manual operation.

Leading-Trailing Brakes

A nonservo type of drum brake in which the shoe anchor is at the bottom of the backing plate; when the brakes are applied, no additional force from the leading shoe can be applied to the trailing shoe.