Unrealized Receivables

Unrealized Receivables means:
any rights to payments not already included in income for:

• goods delivered or to be delivered, to the extent that the payment would be treated as received for property other than a capital asset.

• services performed or to be performed.

If a partnership distributes money or property to a partner in exchange for any part of a partnership interest, the amount that is due to the partner's share of unrealized receivables results in ordinary income or loss. Unrealized receivables include the gain that would be treated as ordinary income if the partnership had sold certain depreciable property at its fair market value at the time of the distribution.