Question: A partnership has two properties, one provides security for a recourse liability, the other is security for a nonrecourse liability. Under Section 752, for purposes
A partnership has two properties, one provides security for a recourse liability, the other is security for a nonrecourse liability. Under Section 752, for purposes of allocating recourse debt, one of the steps is to deem the partnership disposes of all of its assets in a fully taxable transaction. In this instance, the partnership is treated as disposing all of its assets in a fully taxable transaction for no consideration
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