Discussion Question 16-2 (LO. 1)

Assume that a partnership is profitable and that its tax year ends on December 31 but one of the partners' tax year ends on September 30.

Does the partner enjoy a tax benefit or detriment from the partnership's use of a December 31 tax year-end? _____________________

Elaborate on the partner/partnership tax year by completing the statements below.

In general, the _____________ tax year must be the same as the tax year of ___________. If there are none, then the ____________ must adopt the same tax year as ______________. If there are none, the partnership must use a _______________ that results in _________________.