Tom is a 55 general partner in the RST Partnership Tom wants to retire, and the other two partners, Stacy and Rich, want to continue the partnership business They agree that the partnership will liquidate Toms interest in the partnership by paying him 20 of partnership profits for each of the next ...

If the entire partnership terminates the Sec 736 provision ...

Tom is a 55% general partner in the RST Partnership. Tom wants to retire, and the other

Question:

Tom is a 55% general partner in the RST Tom wants to retire, and the other two partners, Stacy and Rich, want to continue the business. They agree that the will liquidate Tom’s interest in the by paying him 20% of profits for each of the next ten years. Explain why Sec. 736 does (or does not) apply to the partnership’s payments to Tom.
Partnership
A legal form of business operation between two or more individuals who share management and profits. A Written agreement between two or more individuals who join as partners to form and carry on a for-profit business. Among other things, it states...