With regard to taxation of partnerships,which of the following statements is correct?
A) Profits are taxed twice.
B) Each partner is taxed in the same way as a sole proprietor.
C) Taxes are paid on a partnership's profits,after which each partner pays taxes on his or her share of the profits.
D) A partnership is exempt from taxes.
E) The partnership is taxed as a separate entity.

Question

Quizplus · Accepted Answer

In a partnership, profits are not taxed at the partnership level. Instead, each partner reports their share of the profits on their personal tax return, similar to a sole proprietor.

With Regard to Taxation of Partnerships,which of the Following Statements