Which of the following is a true statement with respect to a partnership electing under Sec. 444 a fiscal year that is not normally a required tax year and for which a business purpose does not exist?
A. Any fiscal year may be selected if the required payment is made.
B. The election requires the partners to pay an additional tax on their income from the partnership.
C. The election requires a payment to approximate the tax the partners would have paid if the partnership had switched to its required year.
D. The election requires minimum distributions to be made to the partners.
Ans: C. The election requires a payment to approximate the tax the partners would have paid if the partnership had switched to its required year.
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The following dividends were received by a husband, his wife, and both of them jointly: husband-$160; wife-$160; joint-$100. Indicate the amount of dividends that would be subject to taxation if they filed a joint tax return.
A) 420 B) 0 C) 220 D) 200
Which of the following is a relevant consideration in determining whether a government can successfully rely on section 1 of the Charter?
A) that the law was passed by the government in good faith B) that the law is just C) that the law will be of some benefit to society D) that the penalties for which the law provides are reasonable E) that the law is needed to address a matter of pressing and substantial concern