Which of the following statements about the transfer of a partnership interest is not true?
A)The seller's adjusted basis for the partnership interest is increased by the seller's share of undistributed partnership income (or reduced by partnership loss)for the portion of the partnership's taxable year ending on the date of the sale.
B)The partnership taxable year generally does not close with respect to a partner who transfers a partnership interest at death.
C)The amount realized on the sale of a partnership interest is the sum of any money and the fair market value of any property received for the interest,plus the selling partner's share of partnership liabilities under § 752.
D)With respect to a transfer of a partnership interest by gift,all partnership gain,loss,credit,etc. ,items are allocated between the donor and the donee.
E)All of the above are true statements.

Question

Quizplus · Accepted Answer

The statement that the partnership taxable year generally does not close with respect to a partner who transfers a partnership interest at death is false. In fact, the partnership taxable year does close with respect to a partner who transfers a partnership interest at death.

Which of the Following Statements About the Transfer of a Partnership