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

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;

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.