George a Calendar Year Taxpayer) Owns a 40% Interest in the Cash

Essay

George a calendar year taxpayer) owns a 40% interest in the cash basis GLO LLP, which has substantial accounts receivable from its customers. GLO has a natural business year ending March 31. George has found another opportunity and would like to sell his interest on July 1 of the current tax year to new partner Monica. What are some of the issues that should be considered by George, Monica, and GLO?