Section 721 Provides That No Gain or Loss Is Recognized

question 31

True/False

Section 721 provides that no gain or loss is recognized on contribution of property to a partnership in exchange for an interest in the partnership. A disguised sale is an exception to nonrecognition of gain or loss under § 721.

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Definitions:

Low-Value

Describes products, services, or assets that are considered to have a minimal worth or importance in comparison to others.

Bid-Rigging Cartel

An illegal agreement among competitors to fix bidding prices, eliminating competition in the market.

Winning Bid

refers to the highest offer made in an auction that is accepted by the seller, resulting in a sale.

Bidders Values

The subjective valuation individual bidders place on the item or service being auctioned.