Identify which of the following statements is true.
A)Tax-exempt interest received by a partnership is taxable to the partners if distributed.
B)Partnership gains and losses from two different casualty and theft occurrences in one year are passed through to the partners as two separate items.
C)The amount and character of any gains/losses is determined at the partnership level.
D)All of the above are false.

Question

Quizplus · Accepted Answer

The character and amount of any gains or losses are determined at the partnership level and passed through to the partners, as per the rules of partnership taxation. Option A and B are false statements.

Identify Which of the Following Statements Is True