Match the following independent descriptions as hot i.e., ordinary income-producing) or nonhot assets with the following statements.
-Cash basis accounts receivable.
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

Cash basis accounts receivable are considered hot assets because they represent income that has been earned but not yet received, making them ordinary income-producing assets.

Match the Following Independent Descriptions as Hot I