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What is the tax effect to the partnership if an interest in capital is issued in exchange for services provided to the partnership? Group of
What is the tax effect to the partnership if an interest in capital is issued in exchange for services provided to the partnership?
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The partnership receives a deduction at the time the services are performed, whether the capital interest has vested or not.
The partnership receives a deduction at the time when both the services are performed, and the capital interest has vested.
The partnership receives a deduction at the time of vesting, even though the services has not yet been performed.
The partnership receives no deduction.
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