Usually, income derived from a joint venture is taxed as if the organization were a partnership.

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Income from a joint venture is typically taxed as if the organization were a partnership because the joint venture is considered a separate legal entity from its participants but is not a taxable entity itself. Therefore, income is passed through to the individual participants based on their ownership percentage and taxed at their individual tax rates.

Usually, Income Derived from a Joint Venture Is Taxed as If