Nate is a partner in a partnership that received $5,000 of interest income this year. Nate's share of the interest is $1,000, and he should report this income on his individual return as:
A)business income.
B)income from a partnership.
C)interest income.
D)dividend income because the partnership intends to organize next year as a limited liability company.
E)None of the choices are correct.

Question

Quizplus · Accepted Answer

Nate's share of the interest income should be reported as interest income on his individual return, since that is the type of income it is. It is not business income, income from a partnership, or dividend income, as none of these accurately describe the nature of the income received.

Nate Is a Partner in a Partnership That Received $5,000