Section 721 Provides That No Gain or Loss Is Recognized

question 71

True/False

Section 721 provides that no gain or loss is recognized on a contribution of property to a partnership in exchange for an interest in the partnership. An exception might apply if the taxpayer receives a cash distribution from the partnership soon after the property contribution is made.

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Definitions:

Mineral Deposits

Natural accumulations of minerals found within the Earth's crust that can be mined for economic value.

Infant Growth Restriction

A condition characterized by a fetus or infant having a significantly lower weight or size than expected for its gestational age, often due to genetic factors, maternal health, or environmental influences.

Postnatal Year

The first year of life following birth, a critical period for growth and development.

Maternal Health

The health of women during pregnancy, childbirth, and the postpartum period, including physical, mental, and social well-being.