When a Partner Receives a Cash Distribution from a Partnership

question 60

True/False

When a partner receives a cash distribution from a partnership, the distribution is never taxable even if the amount of cash received is greater than the partner's basis in the partnership.

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Definitions:

Perception

The process of organizing, identifying, and interpreting sensory information in order to represent and understand the environment.

Signal-detection Theory

A psychological theory that explains how we discern between information-bearing patterns and random noise in the environment.

Sensory Processes

The mechanisms by which information from the environment is absorbed, transformed into neural signals, and perceived.

Subliminal Perception

The ability to detect information below the conscious level of awareness, which may influence thoughts, feelings, or actions without one being consciously aware of the stimuli.