In what taxable year must a partner recognize her

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1. In what taxable year must a partner recognize her share of partnership income?
2. The months of deferral of partnership income that a partner gets is the number of months from when to when?
3. If a partnership can not come up with an acceptable business purpose for a taxable year, how must it determine its taxable year (what three methods, in order)?
4. If no group of partners with the same taxable year own, in the aggregate, more than 50% of the partnership, how will the partnership taxable year be determined?
5. A principal partner must own at least what percent of the partnership?
6. Under the de minimis rule, a partnership will not be required to change its taxable year, even though the taxable year of least aggregate deferral changes, if what happens?
7. Even if it is unlikely, could a partnership potentially be required to change its taxable year end every year?
8. One way for a partnership to demonstrate a business purpose taxable year is to show that there is a natural business year. How does it show that?
Practical Guide to Partnerships and LLCs—Instructor’s Guide Solutions 7 9. The CDE partnership has the following: Partner Partner’s Year end Interest C 5/31 35% D 6/30 10% E 10/31 55% What is the required year end, assuming a business purpose year end can’t be shown? What is the year end with the least aggregate deferral? 0 0 0.1 2.75 3.85 0 0 2.2 2.45 0.8 0 0
©2015 CCH Incorporated. All Rights Reserved.
Practical Guide to Partnerships and LLCs—Instructor’s Guide Solutions 8 ©2015 CCH Incorporated. All Rights Reserved.

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