If a Partnership Asset with a Deferred Precontribution Gain Is

question 84

True/False

If a partnership asset with a deferred precontribution gain is distributed within seven years of acquisition in a nonliquidating distribution to a partner who did not contribute the asset, the precontribution gain must be recognized by the contributing partner.

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Definitions:

Expropriation

The act of a government taking private property for public use, usually with compensation.

Repatriation Of Capital

The process of converting foreign currency into the currency of one's own country and transferring it back, often applied to profits made from foreign investments.

Eurodollars

U.S. dollars deposited in banks in other countries.

Foreign Banks

Banks that are based in a country different from where they provide services or conduct operations.