A distribution can be proportionate even if only one partner receives assets from the partnership.
Answer the following statement true (T) or false (F)
True
Rationale: A disproportionate distribution arises when the partner’s share of ordinary income-producing assets increases or decreases as the result of a distribution. There are situations in which a distribution can be made to only one partner without upsetting this balance. For example, the partnership might not own any hot assets or the partnership might liquidate the interest of that partner by distributing the partner’s share of hot and nonhot assets (without making corresponding distributions to the other partners). In either of these situations, each partner is still responsible for the ordinary income potential inherent in his, her, or its share of partnership assets, and so the distribution is considered to be proportionate.
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