The Seagull Partnership has three equal partners.Partner A's tax year ends June 30th,and Partners B and C use a calendar year.If the partnership uses the calendar year to report its income,Partner A is permitted to defer partnership income earned from July through December 2017 until he files his tax return for his year ending June 30,2018.

Question

Quizplus · Accepted Answer

This statement is true. A partner with a tax year ending other than December 31st may defer their share of partnership income earned in the last six months of the partnership's tax year until their own tax return deadline for the year ending within the partnership's tax year. In this case, Partner A's tax year ends on June 30th, so they would be allowed to defer their share of income earned from July through December 2017 until they file their tax return for the year ending June 30, 2018.

The Seagull Partnership Has Three Equal Partners