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When a Partner Receives More Than a Proportionate Share of Hot

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True/False

When a partner receives more than a proportionate share of hot assets in a distribution, the transaction is treated as though the partnership distributes a proportionate share of cold assets to the partner and then the partner sells some or allof those cold assets back to the partnership at fair market value in exchange for a portion of the hot assets actually received in the distribution.


Definitions:

Filing Of A Petition

The act of submitting a document to a court or other authority requesting a legal proceeding.

Debts Discharged

The cancellation of a debtor's obligation to pay back a debt, often occurring through bankruptcy proceedings.

Discharging Debts

The process of legally eliminating the obligation to pay back certain debts, often under bankruptcy proceedings.

Order Of Relief

An Order of Relief is a court order in the context of bankruptcy that provides the debtor temporary protection from creditors, lawsuits, and collections.

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