Red, White, and Blue are unrelated corporations engaged in real estate development. The three corporations formed a joint venture (treated as a partnership) to develop a tract of land. Assuming that the venture does not have a natural business year, what tax year must the joint venture adopt under the following circumstances?
|
Tax Year Ending |
Interest in Joint Venture |
||
|
a. |
Red |
March 31 |
60% |
|
Blue |
June 30 |
20% |
|
|
White |
October 31 |
20% |
|
|
b. |
Red |
October 31 |
30% |
|
White |
September 30 |
40% |
|
|
Blue |
January 31 |
30% |