Question

Sarah, Sue, and AS Inc. formed a partnership on May 1, 20X9, called SSAS, LP. Now that the partnership is formed, they must determine its appropriate year-end. Sarah has a 30 percent profits and capital interest while Sue has a 35 percent profits and capital interest. Both Sarah and Sue have calendar year-ends. AS Inc. holds the remaining profits and capital interest in the LP, and it has a September 30 year-end. What tax year-end must SSAS, LP, use for 20X9, and which test or rule requires this year-end

Answer 1

Answer:

The correct answer to the following question will be "12/31, majority interest taxable year".

Explanation:

• Throughout the incident in question, all parties mostly in calendar year carry upwards of fifty percent and the result is 12/31, most interest taxing year.
• When all the participants in the calendar year have a mutual value of more than 50 percent so the same will be selected.

They will vote for the 12/31 fiscal year minimum interest. And the solution to the above seems to be the right one.