[Mars2010]

Per becker material, it is “generally calendar year”,

but there is an mcq says it should be the same taxable year as the common taxable year of the partners having greater than 50%.

Could somebody help.

Thanks.

[Igotthis]

Mars:

The general rule is that a partnership must adopt the same calendar year as the partner(s) who own 50% or more of the capital or partnership (and these partners had that type of taxable year for 3 consecutive years). Generally individuals have calendar year filings.

The exception to the rule is if the partnership can prove a valid business purpose to not follow the general rule. For example the 25% rule, where at least 25% of the gross receipts are at certain quarter for 3 consecutive years. Then they can elect a fiscal year.

[Igotthis]

Mars:

The general rule is that a partnership must adopt the same calendar year as the partner(s) who own 50% or more of the capital or partnership (and these partners had that type of taxable year for 3 consecutive years). Generally individuals have calendar year filings.

The exception to the rule is if the partnership can prove a valid business purpose to not follow the general rule. For example the 25% rule, where at least 25% of the gross receipts are at certain quarter for 3 consecutive years. Then they can elect a fiscal year.

[Author]

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