In the year that a donor gives a partnership interest to a donee, their share of the partnership's income is prorated between the donor and donee.

Question

Quizplus · Accepted Answer

The IRS requires that when a partnership interest is transferred during the year, the donor and donee must prorate the income, deductions, losses, and credits based on the portion of the year each held the interest, unless the partnership agreement specifies a different method of allocation.

In the Year That a Donor Gives a Partnership Interest