If the transferor partner receives payment for his or her interest in the partnership's Sec. 751 assets, he or she must recognize ordinary income no matter how the transaction is structured.

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This is true. According to IRC Section 751(a), if a partner receives payment for their interest in the partnership's Sec. 751 assets (such as unrealized receivables or inventory), they must recognize ordinary income regardless of the structure of the transaction.

If the Transferor Partner Receives Payment for His or Her