Since the income of a partnership must be reported on the individual partners' personal income tax returns,this results in double-taxation of partnership profits.

Name: Since the income of a partnership must be reported on the individual partners' personal income tax returns,this results in double-taxation of partnership profits.
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Quizplus · Accepted Answer

Partnership profits are not subject to double taxation. The income is taxed only once at the individual partners' personal income tax rate.

Since the Income of a Partnership Must Be Reported on the Individual