### Question
How is the term majority interest taxable year defined?


### Answer
The term **majority interest taxable year** is defined in *26 U.S.C. § 706* as the following:

> the taxable year (if any) which, on each testing day, constituted the taxable year of 1 or more partners having (on such day) an aggregate interest in partnership profits and capital of more than 50 percent

#### Citation:
  - *26 U.S.C. § 706*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter K-Partners and Partnerships > PART I-DETERMINATION OF TAX LIABILITY**

