Partnerships tax rules incorporate both the entity and aggregate approaches.

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Partnership tax rules are unique in that they incorporate both the entity and aggregate approaches. Partnerships are considered pass-through entities, meaning that the partnership itself does not pay taxes on its income, but rather the individual partners are responsible for reporting their share of the partnership's income on their personal tax returns. At the same time, partnerships are treated as separate entities for some tax purposes, such as filing a partnership tax return and being subject to certain tax rules and regulations.

Partnerships Tax Rules Incorporate Both the Entity and Aggregate Approaches