What is the result when a partnership agreement allocation fails to have substantial economic effect?...
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What is the result when a partnership agreement allocation fails to have substantial economic effect? The partners may modify the agreement for the tax year after the due date of the partnership return for that year. The partner receiving the allocation also receives its economic benefit or bears its burden. The partner is classified as a limited partner. The parther's distributive share of income, gain, or loss is based on the partner's interest in the partnership. 
What is the result when a partnership agreement allocation fails to have substantial
economic effect?
The partners may modify the agreement for the tax year after the due date of the partnership return
for that year.
The partner receiving the allocation also receives its economic benefit or bears its burden.
The partner is classified as a limited partner.
The parther's distributive share of income, gain, or loss is based on the partner's interest in the
partnership.
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