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:

Subject Complement

A word or phrase that follows a linking verb and describes or identifies the subject of a sentence.

Complements

Elements that complete or bring to perfection; in grammar, words or groups of words that complete the meaning of a predicate.

Obverse

The front or main view of an object such as a coin, or in logic, it refers to a proposition that is the affirmative counterpart to a negative statement.

Proposition

An assertion or declaration that demonstrates a viewpoint or judgment, and has the potential to be true or false.