Partners are taxed on

Question

Quizplus · Accepted Answer

Partners are taxed on their share of the net profit of the company, as this income is considered part of their personal income for tax purposes. Cash withdrawals from the company do not necessarily reflect a partner's share of the profits, and the gross sales of the company do not take into account business expenses and therefore are not an accurate measure of a partner's taxable income. The total amount of net profit may also not reflect each partner's individual contributions and share of the profits.

Partners Are Taxed on