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.

---

Definitions:

Instinctoid

A term used to describe behaviors or instincts that are innate but can be modified by environmental factors.

Genetics

The study of heredity and the variation of inherited characteristics.

Hierarchy

A system or organization in which people or groups are ranked one above the other according to status or authority.

Psychology

Psychology is the scientific study of the mind and behavior, exploring various aspects of conscious and unconscious experience as well as thought processes.