Partners may agree to specially allocate any existing revenue, expense, or other partnership item in any way they wish when (a) they have owned their interest in the partnership for the entire year, and (b) the allocation has a substantial economic effect.(Assume all partners contributed cash for their capital interests.)

Question

Quizplus · Accepted Answer

Partners have the flexibility to allocate partnership items as they desire as long as they meet the two conditions mentioned in the statement.

Partners May Agree to Specially Allocate Any Existing Revenue, Expense