Daniel has no family to inherit his 80% capital and profits interest in the CD Partnership. To

Question:

Daniel has no family to inherit his 80% capital and profits interest in the CD To ensure the continuation of the business, he gives a 20% capital and profits interest in the to David, his best friend’s son, on the condition that David work in the for at least five years. David receives guaranteed payments for his work. Daniel takes no salary from the but he devotes all his time to the business operations of the What tax issues should Daniel and David consider with respect to the gift of the interest and Daniel’s employment arrangement with the Partnership
A legal form of business operation between two or more individuals who share management and profits. A Written agreement between two or more individuals who join as partners to form and carry on a for-profit business. Among other things, it states...