Question: True or False? Under Code section 734(b), a liquidating distribution may require a partnership to decrease the basis of its assets (even when the liquidating

True or False? Under Code section 734(b), a liquidating distribution may require a partnership to decrease the basis of its assets (even when the liquidating partner does not recognize a loss). This result could occur when a partner's basis in property received in a liquidating distribution generally equals the pre-liquation basis in the partnership, resulting in the liquidating partner taking a stepped basis in the property received

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