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.

Group of answer choices

True

False

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