A distribution can be "proportionate" (as defined for purposes of Subchapter K) even if only one partner receives assets from the partnership.

Question

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According to the definition of a proportionate distribution in Subchapter K of the Internal Revenue Code, it refers to a distribution that is made in the same proportion as each partner's share in the partnership's profits and losses, regardless of whether one or multiple partners receive assets from the partnership. Therefore, a distribution can still be considered proportionate even if only one partner receives assets from the partnership.

A Distribution Can Be "Proportionate" (As Defined for Purposes of Subchapter