Gold Corporation, Silver Corporation, and Copper Corporation are equal partners in the GSC Partnership.The partners' tax year-ends are as follows: $$\begin{array} { l l }
\text { Gold } & \text { December } 31 \
\text { Silver } & \text { April } 30 \
\text { Copper } & \text { September 30 }
\end{array}$$

Question

Gold Corporation, Silver Corporation, and Copper Corporation are equal partners in the GSC Partnership.The partners' tax year-ends are as follows: $$\begin{array} { l l } 
\text { Gold } & \text { December } 31 \
\text { Silver } & \text { April } 30 \
\text { Copper } & \text { September 30 }
\end{array}$$

Quizplus · Accepted Answer

According to the tax law, partnerships with equal partners must use the same tax year as their partners, unless a business purpose can be shown. Since all three partners have different year-ends and no business purpose is mentioned, the partnership must use a common year-end, which will be the year-end of a majority interest partner, which in this case is September 30 (since two partners have a September 30 year-end and only one has an April 30 year-end).

Gold Corporation, Silver Corporation, and Copper Corporation Are Equal Partners