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QUESTION 1 Partner D was given (by his mother) his 20% interest in a business in which capital is not a material income- prod

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If capital is not a material income-producing factor, a partnership resulting from a gift of an interest might be disregarded as an invalid attempt to assign income. If all the income is attributable to the personal efforts of the donor, he or she will be taxed on the entire amount of the income .

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