A Partnership Terminates for Tax Purposes

question 23

Multiple Choice

A partnership terminates for tax purposes

• A)only when it terminates under local partnership law.
• B)when at least 50% of the total interest in partnership capital and profits changes hands by sale or exchange within twelve consecutive months.
• C)when the sale of partnership assets is made only to an outsider(s)and not to an existing partner(s).
• D)when a partnership tax return (Form 1065)ceases to be filed by the partnership.

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Definitions:

J1939 Data Bus

A communication protocol based on CAN (Controller Area Network) used in the heavy-duty trucking industry for electronic control units (ECUs) to communicate.

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A smart switch is an advanced electrical switch that can be controlled remotely through an app or a home automation system, allowing for smarter energy usage and convenience.

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Failure Mode Identifier, a diagnostic code in automotive and machinery industries indicating the type of failure in a system.