If partners having a majority interest in the partnership do not have the same tax year, the partnership uses the same tax year as all of its principal partners-those with 10% or greater interest in the partnership.

Question

Quizplus · Accepted Answer

If partners with a majority interest do not have the same tax year, the partnership must use the tax year of its principal partners only if all principal partners have the same tax year. Otherwise, the partnership must use the tax year resulting in the least aggregate deferral of income.

If Partners Having a Majority Interest in the Partnership Do