If a Partner Has a More Than 50 Percent Interest

question 5

True/False

If a partner has a more than 50 percent interest in a partnership,a capital gain resulting from the sale of property to the partnership will be taxed as ordinary income to the partner,provided the property is not a capital asset to the partnership.

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Definitions:

Human Capital

The competencies, understanding, and expertise held by a person or group, considered regarding their importance to a company or community.

Higher Salaries

Refers to wages that are above the average for a particular profession or region, often due to high demand, skill level, or experience.

Marginal Costs

The additional cost incurred from the production of one more unit of a product or service.

Value of Marginal Product

The additional revenue a firm generates from employing one more unit of input, such as labor, assuming all other inputs are constant.