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:

Question

Quizplus · Accepted Answer

Nate should report the received interest income as interest income on his individual return since it is passive income from the partnership and not related to his business income or income from a partnership. The fact that the partnership intends to organize as a limited liability company next year is irrelevant to the reporting of interest income for this year.

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