A payment to a retiring general partner for his or her share of goodwill of a partnership in which capital is not a material income-producing factor is classified as a § 736(a)income payment and results in ordinary income to the retiring partner and a current deduction to the partnership,as long as the goodwill payment is provided for in the partnership agreement.

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The Answer of A payment to a retiring general partner for his or her share of goodwill of a partnership in which capital is not a material income-producing factor is classified as a § 736(a)income payment and results in ordinary income to the retiring partner and a current deduction to the partnership,as long as the goodwill payment is provided for in the partnership agreement.

A Payment to a Retiring General Partner for His or Her