In a partnership,all profits and losses flow through each partner's ________.
A) tax returns
B) savings
C) liabilities
D) investments
E) mortgages

Question

Quizplus · Accepted Answer

In a partnership, the profits and losses are not taxed at the entity level, but rather flow through to the individual partners' tax returns. Each partner is responsible for reporting their share of the partnership income or loss on their personal tax return and paying the applicable taxes or receiving the tax benefits. Therefore, choice A is the correct answer.

In a Partnership,all Profits and Losses Flow Through Each Partner's