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Constructive Liquidation

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Which of the following statements is false concerning the requirements of the atom bomb (Constructive liquidation) of Regulation Section 1.752-1?

Limited partners, not general partners, are deemed to have their interests liquidated.
Partners must restore negative capital accounts after the constructive liquidation.
Partnership assets are considered to be worthless and sold for their worthless value.
Partnership liabilities are deemed to be due and payable.

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The false statement is the first statement: "Limited Partners, not ...

Solution Summary

What does Regulation Section 1.752-1 actually mean to constructive liquidation and partners? Learn more with a series of true statements and an explanation of why one false statement about Section 1.752-1 is false.