Under the entity concept, a partnership interest is an intangible asset similar to an ownership interest in a corporation. As such, a partnership interest is generally treated as a capital asset, the disposal of which results in capital gain or loss.

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Partnership interest is generally treated as a capital asset, resulting in capital gain or loss upon disposal. This is in accordance with the entity concept which treats a partnership as a separate entity from its partners.

Under the Entity Concept, a Partnership Interest Is an Intangible