Discussion:Liquidating partner - open-transaction
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Discussion Forum Index --> Advanced Tax Questions --> Liquidating partner - open-transaction
Discussion Forum Index --> Tax Questions --> Liquidating partner - open-transaction
| 25 December 2008 | |
| It is my understanding that if a partnership distributes money in liquidation of a partner's interest and the money distributed is less than the departing partner's outside basis, then the departing partner can recognize a loss. The loss is deferred though generally until all Section 736(b) payments have been made. If the partnership gives the departing partner a promissory note, does that have the same meaning as cash distributed, thus enabling the departing partner the ability to recognize the loss at the time of receipt of the promissory note, or does he have to wait until he has received all payments on the promissory note? | |
