A partner's profit from a partnership is taxed as income to the firm.

Name: A partner's profit from a partnership is taxed as income to the firm.
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Question

A partner's profit from a partnership is taxed as income to the firm.​

Quizplus · Accepted Answer

A partner's profit from a partnership is taxed as personal income to the individual partner, not as income to the firm. Partnerships are "pass-through" entities for tax purposes, meaning the profits pass through the business to the partners, who then report their share of the profits on their personal tax returns.

A Partner's Profit from a Partnership Is Taxed as Income