For income tax purposes the income of the partnership flows through to become the taxable income of each of the partners.

Name: For income tax purposes the income of the partnership flows through to become the taxable income of each of the partners.
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Question

Quizplus · Accepted Answer

This statement is true. The profits and losses of the partnership are reported on the individual tax returns of each partner, and the partnership itself does not pay income tax.

For Income Tax Purposes the Income of the Partnership Flows