Which of the following transactions will not result in the termination of a partnership for Federal tax purposes?
A) The partnership is incorporated.
B) The sole surviving partner buys the interest of the deceased second partner through a buy-sell agreement taking place upon the second partner's death.
C) Cash is distributed in liquidation of a 60% partner's interest in a five-partner partnership.
D) A 40% interest in partnership capital and profits is sold to the other partner in a two-partner partnership.
E) All of these terminate the partnership.

Question

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The Answer of Which of the following transactions will not result in the termination of a partnership for Federal tax purposes?
A) The partnership is incorporated.
B) The sole surviving partner buys the interest of the deceased second partner through a buy-sell agreement taking place upon the second partner's death.
C) Cash is distributed in liquidation of a 60% partner's interest in a five-partner partnership.
D) A 40% interest in partnership capital and profits is sold to the other partner in a two-partner partnership.
E) All of these terminate the partnership.

Which of the Following Transactions Will Not Result in the Termination