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:

Contingency Management

A type of behavioral therapy in which certain behaviors are reinforced by rewards or sometimes punishment to modify behavior.

Behavior Therapy

A type of psychotherapy focused on changing negative or unhealthy behaviors using learning principles and conditioning techniques.

Modeling

A process in cognitive science and artificial intelligence that involves creating mathematical or computational representations of real-world phenomena.

Flooding

A behavioral therapy technique that involves exposing the person to their phobias or fears in a safe and controlled manner until the fear response is diminished.