Source: Federal Income Tax: Code and Regulations-Selected Sections (2020-2021), by Robert J. Peroni, published by Wolters Kluwer July 30, 2020. ISBN 9780808054610. Product Number 10014873-0011

1. A and B are equal partners in the AB partnership and are calendar year taxpayers. The AB partnership is on a June 30th fiscal year. Determine the tax consequences, if any, in the following alternative circumstances;

c. A died on June 30. The partnership agreement provides that A's estate will be the owner of his partnership interest which will be liquidated through distributions over a six-month period. What result? What if the agreement provided for immediate liquidation of the partnership interest with payment by the partnership over a period of time?

d. A gave his partnership interest to his daughter, C on July 15.

e. A sold one-half of his partnership interest to C on June 30, year 1. C sold this interest to D on May 30, year 2. B sold one-half of her partnership interest to E on October 31, year 2.

f. B is a corporation which it liquidated on June 30 and distributing its partnership interest to its shareholders, C, D, and E.

g. A died on June 30, year 1, at which time his estate became the owner of his partnership interest. On March 10, year 2, the estate distributed the partnership interest to named legatee.