THIS IS A TAX QUESTION Barney Chang and Aldrin, Inc., a domestic


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THIS IS A TAX QUESTION Barney Chang and Aldrin, Inc., a domestic C corporation, have decided to form BA, LLC. The new entity will produce a product that Barney recently developed and patented. Barney and Aldrin each will own a 50% capital and profits interest in the LLC. Barney is a calendar year taxpayer, while Aldrin is taxed on a July 1– June 30 fiscal year. BA does not have a “natural business year” and elects to be taxed as a partnership. a. Determine the taxable year of the LLC under the Code and Regulations. b. Two years after formation of BA, Barney sells half of his interest (25%) to Aldrin. Can BA retain the taxable year determined in part (a)? Why or why not? JusticeFreedomPuppy9402
posted a question · Jun 16, 2015 at 8:30pm

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