Detailed Answer
(c) The requirement is to determine under which
circumstances a partnership, other than an electing large partnership,
is considered terminated for income tax purposes. A partnership
will be terminated when (1) there are no longer at least
two partners, (2) no part of any business, financial operation, or
venture of the partnership continues to be carried on by any of its
partners in a partnership, or (3) within a twelve-month period
there is a sale or exchange of 50% or more of the total interest in
partnership capital and profits.