Wonton Foods is a partnership owned 40 percent by Sze-Ern,25 percent by Quinquang,and 35 percent by Zhaou.Sze-Ern and Zhaou each have an October 31 tax year-end,while Quinquang has a February 28 tax year-end.Under the general rule,what tax year-end should the partnership adopt?

Question

Quizplus · Accepted Answer

The partnership must adopt the tax year-end of the majority interest partners. Since Sze-Ern and Zhaou together own 75% of the partnership and both have an October 31 year-end, the partnership should adopt October 31 as its tax year-end.

Wonton Foods Is a Partnership Owned 40 Percent by Sze-Ern,25