MNO Partnership has three equal partners. Moon, Inc and Neptune, Inc each have fiscal years ending March 31 . Omega uses the calendar year. MNO's taxable year end must be determined using the least aggregate deferral method, and is December 31
a. True
b. False
Indicate whether the statement is true or false
False
RATIONALE: The partnership's taxable year end is determined by reference to the first of three tests that is met by the partnership. The first test is the majority partners' tax year test. If more than 50% of the partnership's capital and profits interests are owned by one or more partners with the same tax year, that year is required. The corporations with March 31 year ends, combined, own 66 2/3% of partnership capital and profits, so that year end is used.
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