The purpose of IRC Section 751b includes which of the follow

The purpose of IRC Section 751(b) includes which of the following? A To ensure that capital assets are taxed as ordinary income B to prevent conversion of capital gains into ordinary income among partners C to prevent pro rata distribution of ordinary income D to prevent the conversion of ordinary income into capital gains among partners

Solution

D to prevent the conversion of ordinary income into capital gains among partners
Partnership interests are generally recongized as capital assets that may be sold or exchanged with the capital gain and loss treatment to the selling partner. If transferee partner recieves proceeds will be treated as ordinary income.