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:

Delegation

The assignment of responsibility and authority to someone else while retaining ultimate accountability.

Accountable

Being responsible for one's actions and the outcomes of those actions, often involving an obligation to report, explain, or justify them.

Good Management

Refers to the process of effectively planning, organizing, leading, and controlling resources and tasks to achieve organizational goals.

Learning

A process of acquiring new understanding, knowledge, behaviors, skills, values, attitudes, and preferences.