A Partnership Terminates for Federal Income Tax Purposes If

question 3

Multiple Choice

A partnership terminates for federal income tax purposes if

• A)a general partner who owns a majority interest dies.
• B)state partnership law terminates the partnership.
• C)a partnership interest of more than 50% is gifted.
• D)within a 12-month period, there is a sale or exchange of at least 50% of the total interest in partnership capital and profits.

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