collapsible partnership

Tax. A partnership formed by partners who intend to dissolve it before they realize any income.

• Any partner’s gain resulting from unrealized receivables or inventory that has increased substantially in value will be treated by the IRS as ordinary income rather than as capital gain. IRC (26 USCA) § 751. Cf. collapsible corporation under CORPORATION. [Cases: Internal Revenue 3931, 3935.]

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词条贡献者

译者Frank，毕业于英国一流的高级翻译学院，擅长翻译涉及交通物流领域的法律文件。