No gain is recognized on the sale of property between a partnership and a more-than-50% partner.

Question

Quizplus · Accepted Answer

Gain can be recognized on the sale of property between a partnership and a partner who owns more than a 50% interest in the partnership. This is because transactions between a partnership and its partners are considered related party transactions, and special rules apply to prevent the abuse of tax laws, such as shifting taxable income or deductions between the entities.

No Gain Is Recognized on the Sale of Property Between