Which of the following is true about a partnership?
A)It is not a tax-paying entity for federal income tax purposes.
B)Business losses are deductible based on the limit on a partner's individual tax return.
C)It does not have a life apart from its owners.
D)Partners of a partnership do not assume personal liability for obligations of the business.

Question

Quizplus · Accepted Answer

Like the sole proprietorship,the partnership is not a tax-paying entity for federal income tax purposes.All of the income of the partnership is income to its partners and must be reported on the individual partners' federal income tax returns whether or not it is distributed to the partners.

Which of the Following Is True About a Partnership