7736 / In what year does an individual include partnership income and loss on a tax return?
A partner includes on a return the distributive share of partnership items of income, gain, loss, deductions, and credits for the partnership year that ends in or at the same time as his or her own taxable year. Since most individuals report on a calendar year basis, an individual partner generally includes partnership income for the same calendar year as a partnership that reports on the calendar year basis. If the partnership uses a non-calendar fiscal year, the calendar year partner includes partnership income, gains, losses, deductions, and credits for the partnership year that ends in the partner’s calendar year.1
The amounts included in the year a partnership interest is acquired, or in which a partner sells, liquidates, or gives away his or her partnership interest or the year a partner dies, are explained in Q 7746, Q 7753, Q 7759, and Q 7763.
1. IRC § 706(a); Treas. Reg. § 1.706-1(a).