The sale of a partnership interest always results in capital gain or loss rather than ordinary income.

Name: The sale of a partnership interest always results in capital gain or loss rather than ordinary income.
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The sale of a partnership interest can result in both capital gain or loss and ordinary income. The portion of the gain attributable to the sale of unrealized receivables or inventory items (hot assets) is treated as ordinary income, while the remainder is generally treated as capital gain.

The Sale of a Partnership Interest Always Results in Capital