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In year 1, H agrees to render management services to X, a 3-person partnership, in exchange for receiving a 25% partnership capital interest. He must

In year 1, H agrees to render management services to X, a 3-person partnership, in exchange for receiving a 25% partnership capital interest. He must continue to be employed for 3 years or his partnership capital interest will be forfeited. H can be fired at will. H must include an amount in year 1 gross income with respect to the management services agreement. True or False

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