If a partner would be obligated to contribute to the partnership at the end of the constructive liquidation, but the partner is already in bankruptcy and would therefore not be making any payments under any circumstances, would the partner still be allocated any of the liabilities of the partnership for purposes of computing basis?
Added by Lisa C.
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" This refers to the hypothetical scenario where a partnership is deemed to have sold all of its assets and paid off all of its liabilities, resulting in the distribution of any remaining cash or property to the partners. In this scenario, if a partner is Show more…
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