Gains on the revaluation of assets and liabilities upon the dissolution of a partnership are taxable to each partner.

Question

Quizplus · Accepted Answer

Gains on the revaluation of assets and liabilities upon the dissolution of a partnership are not directly taxable; they are accounted for in the partners' capital accounts and taxed when realized through distributions or final settlement of the partnership's affairs.

Gains on the Revaluation of Assets and Liabilities Upon the Dissolution