The Dex Home improvement General Partnership is planning to adopt a fiscal year ending September 30, while Brinks(a 20% Partner) uses the calendar year as his taxable year. Research the Internal Revenue Code to determine how Brinks should determine the amount of income and other partner items from the fiscal year partnership that must be reported on Brinks 2014 calendar year tax return. Indicate the section and subsection from the IRC in the shaded boxes below.

Quiz For Items 63 through 68, determine whether the statement is true (T) or false (F). During 1994, the Dex Partnership breaks even but decides to make distributions to each partner. 63. (CPAN94#63) A nonliquidating cash distribution may reduce the recipient partner's basis in his partnership interest below zero. 64. (CPAN94#64) A nonliquidating distribution of unappreciated inventory reduces the recipient partner's basis in his partnership interest. 65. (CPAN94#65) In a liquidating distribution of property other than money, where the partnership's basis of the distributed property exceeds the basis of the partner's interest, the partner's basis in the distributed property is limited to his predistribution basis in the partnership interest. 66. (CPAN94#66) Gain is recognized by the partner who receives a nonliquidating distribution of property, where the adjusted basis of the property exceeds his basis in the partnership interest before the distribution. 67. (CPAN94#67) In a nonliquidating distribution of inventory, where the partnership has no unrealized receivables or appreciated inventory, the basis of inventory that is distributed to a partner cannot exceed the inventory's adjusted basis to the partnership. 68. (CPAN94#68) The partnership's nonliquidating distribution of encumbered property to a partner who assumes the mortgage does not affect the other partners' bases in their partnership interests 69) The Dex Home Improvement General Partnership is planning to adopt a fiscal year ending September 30, while Brinks (a 20% partner uses the calendar year as his taxable year. Research the Internal revenue code to determine how Brinks should determine the amount of income an other partnership items from the fiscal year partnership that must be report on Brinks 2014 calendar-year tax return. Indicate the section and subsection from the IRC in the shaded boxes below