Termination of Partnerships - All of the Partnerships operations are discontinued and no part of any business, financial operation, or venture is continued by any of its partners in a partnership or
At least 50% of the total interest in partnership capital and profits is sold or exchanged within a 12 month period,
including a sale or exchange to another partner. See Regulations section 1.708-1(b)(1) for more details.
Partnership Tax Year Ends
The partnership's tax year ends on the date of termination. For purposes of 1 above, the date of termination is the date the
partnership winds up its affairs. For purposes of 2 above, the date of termination is the date the partnership interest is
sold or exchanged that, of itself or together with other sales or exchanges in the preceding 12 months, transfers an interest
of 50% or more in both partnership capital and profits.
Special rules apply in the case of a merger, consolidation, or division of a partnership. See Regulations sections 1.708-1(c)
and (d) for details.