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(i) Items of income, gain, loss, deduction, or credit
of the partnership;
(ii) Expenditures by the partnership not deductible in
computing its taxable income (for example, charitable
contributions);
(iii) Items of the partnership which may be tax
preference items under section 57(a) for any partner;
(iv) Income of the partnership exempt from tax.
[Sec. 301.6231(a)(3)-1(a)(1), Proced. & Admin. Regs.]
The "same share" requirement is determined annually, see sec.
301.6231(a)(1)-1T(a)(4), Temporary Proced. & Admin. Regs., 52
Fed. Reg. at 6789, "by examining the partnership return and the
corresponding Schedules K-1, and any amendments thereto received
prior to" the commencement date of respondent's audit of the
partnership. Harrell v. Commissioner, 91 T.C. at 246; see also
Z-Tron Computer Research & Dev. Program v. Commissioner, 91 T.C.
258, 262 (1988). As previously noted, petitioners' Schedules
K-1 reflect that they had a 50-percent interest in partnership
profits, losses, and capital for the 1994 and 1995 taxable years.
Executive Inn's Forms 1065, for the 1994 and 1995 taxable years
reflect partnership ordinary income of $48,773 and $124,282,
respectively. The only partnership item listed on petitioners'
Schedules K-1 for the 1994 and 1995 taxable years is ordinary
income from trade or business activities. There is no indication
that petitioners had filed amendments to these forms prior to
commencement of the partnership audit. In accordance with their
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Last modified: May 25, 2011