Maggie and Simon each have a 50% interest in a partnership that started business October 1. Maggie uses a calendar year while Simon has a fiscal year ending November 30. Which of the following is true?
A. The partnership may use the calendar year.
B. The partnership may use the fiscal year ending September 30 provided a Sec. 444 election and payment are made.
C. The partnership may use the fiscal year ending September 30 provided a Sec. 444 election and payment are made, and the partnership may use the fiscal year ending November 30 as that results in the least deferral.
D. The partnership may use the fiscal year ending November 30 as that results in the least deferral.
Ans: C. The partnership may use the fiscal year ending September 30 provided a Sec. 444 election and payment are made, and the partnership may use the fiscal year ending November 30 as that results in the least deferral.
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