O purchased a 20% interest in the OOPS partnership for $20,000 on January 1, 2012.He purchased another 10% interest in OOPS for $10,000 on December 1, 2012.As of January 1, 2013, what is O's holding period in his partnership interest?

Question

Quizplus · Accepted Answer

O's holding period for his first 20% interest starts on January 1, 2012 and ends on December 31, 2012, which is one year. For his second 10% interest, the holding period starts on December 1, 2012 and ends on December 31, 2012, which is one month. Therefore, O has a holding period of one year for 67% of his interest (20% for 12 months and 47% of the 30% for 12 months) and a holding period of one month for 33% of his interest (3% of the 30% for one month).

O Purchased a 20% Interest in the OOPS Partnership for $20,000