Liquidation of a Partner's Interest Law and Legal Definition

According to 26 USCS § 761 [Title 26. Internal Revenue Code; Subtitle A. Income Taxes; Chapter 1. Normal Taxes And Surtaxes; Subchapter K. Partners And Partnerships; Part III. Definitions], liquidation of a partner's interest means “the termination of a partner's entire interest in a partnership by means of a distribution, or a series of distributions, to the partner by the partnership.”