In a proportionate nonliquidating distribution, cash is deemed to be distributed first, followed by capital and § 1231 assets, and last, unrealized receivables and inventory.

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In a proportionate nonliquidating distribution, the order of distribution is not specified by tax law. The distribution is based on the partner's interest in the partnership, and the type of assets distributed does not follow a specific order like cash, capital, § 1231 assets, unrealized receivables, and inventory.

In a Proportionate Nonliquidating Distribution, Cash Is Deemed to Be