Generally, a Distribution of Property Does Not Result in Gain

question 122

True/False

Generally, a distribution of property does not result in gain to a partner on either a current or liquidating distribution. A situation where a gain may arise, however, is when a partner contributed appreciated property to the partnership and that property is distributed back to the contributing partner within seven years of the contribution.

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Definitions:

Ocean-Continent Convergent Margin

A boundary between tectonic plates where an oceanic plate is subducting beneath a continental plate, leading to volcanic and seismic activity.

Fold and Thrust Belt

A series of mountainous folds and fault-driven compressions in the Earth's crust, typically found at convergent tectonic plate boundaries.

Magmas

Molten rock beneath or within the Earth's crust, from which igneous rocks are formed.

Ocean-Continent Convergence

A type of plate boundary where a continental plate and oceanic plate collide, often resulting in volcanic activity and mountain building.