Which of the Following Statements Regarding the Sale of a Partnership

question 64

Multiple Choice

Which of the following statements regarding the sale of a partnership interest is false?

• A) The selling partner determines the gain or loss as the difference between the amount realized and her outside basis in the partnership.
• B) The seller's primary tax concern in a partnership interest sale is calculating the amount and character of gain or loss on the sale.
• C) Any debt relief increases the amount the partner realizes from the sale.
• D) Hot assets change the character of a gain on the sale from ordinary income to capital gain.

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Definitions:

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