Which of the following statements regarding the process for determining a partnership's tax year-end is true?
A) Only the partners' profits interests are relevant when determining if a partnership has a majority interest taxable year.
B) Under the principal partners test, a principal partner is defined as a partner having an interest of 3% or more in the profits or capital of the partnership.
C) The least aggregate deferral test utilizes the partners' capital interests to measure the amount of aggregate deferral.
D)A partnership is required to use a calendar year-end if it has a corporate partner.
E)None of these

Question

Quizplus · Accepted Answer

None of the provided statements are true. The majority interest taxable year considers both profits and capital interests, a principal partner is defined as having a 5% or more interest, the least aggregate deferral test uses profits interests, and a partnership is not required to use a calendar year-end solely because it has a corporate partner.

Which of the Following Statements Regarding the Process for Determining