Identify which of the following statements is false.
A)A sale or exchange of at least 50% of the capital and profits interest in a partnership within a 12- consecutive-month period will terminate the partnership and end all of the partnership's elections.
B)When using the 50% rule to terminate a partnership, if an interest is sold more than once during the 12-month period, each sale is counted separately.
C)A partner's individual income tax return, under some circumstances, may include the results of partnership operations for a period exceeding 12-months.
D)When several different transfers are made during a 12-month period, the partnership termination occurs on the date of the transfer that first crosses the 50% threshold.

Question

Quizplus · Accepted Answer

The statement in option B is false. When using the 50% rule to terminate a partnership, if an interest is sold more than once during the 12-month period, all the sales are aggregated to determine whether the 50% threshold has been crossed.

Identify Which of the Following Statements Is False