Match the following independent descriptions as "hot" (i.e., ordinary income-producing) or nonhot assets with the statements below.
-Land held by the partnership for the purpose of subdividing and selling lots.
A)Hot assets for purposes of distributions, liquidation of a partnership interest under § 736, and sale of a partnership interest.
B)May be a hot asset for some but not all the purposes stated in (a).
C)Not a hot asset.

Question

Quizplus · Accepted Answer

Land held for the purpose of subdividing and selling lots may be considered a hot asset for certain purposes, such as when it is treated as inventory, but not necessarily for all purposes listed in option A.

Match the Following Independent Descriptions as "Hot" (I