PLEASE EXPLAIN YOUR THEORY ON WHY YOU CHOSE THE ANSWER YOU DID...THANKS! XYZ, LL
ID: 2371426 • Letter: P
Question
PLEASE EXPLAIN YOUR THEORY ON WHY YOU CHOSE THE ANSWER YOU DID...THANKS!
XYZ, LLC has several individual and corporate members. Abe and Joe, individuals with 4/30 year-ends, each have a 23% profits and capital interest. RST, Inc., a corporation with a 6/30 year end, owns a 4% profits and capital interest while DEF, Inc., a corporation with an 8/30 year end, owns a 4.9% profits and capital interest. Finally, thirty other calendar year-end individual partners (each with less than a 2% profits and capital interest) own the remaining 45% of the profits and capital interests in XYZ. What tax year-end should XYZ use and which test or rule requires this year-end?
4/30, principal partners test
4/30, least aggregate deferral test
12/31, principal partners test
12/31, least aggregate deferral test
4/30, principal partners test
4/30, least aggregate deferral test
12/31, principal partners test
12/31, least aggregate deferral test
Explanation / Answer
12/31, principal partners test
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