interest? Services but no property to the CD Partnership upon its formation. What are the tax implications of his receiving only a profits interest versus his receiving a capital and profits A. Doug is not required to report any income for the first five years. B. Whether Doug receives a profits interest or a capital and profits interest, he should report the value of the property he receives for services as a capital gain. C. Doug is not required to report any income, whether he receives a profits interest or a capital and profits interest. O D. Whether Doug receives a profits interest or a capital and profits interest, he theoretically should report the value of the property he receives for services as ordinary income