The LP is almost always a "mere conduit" for income to the owners so that it pays no income tax.

Question

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Limited Partnerships (LPs) are typically structured as pass-through entities, meaning the income or profits of the partnership are passed along to the individual partners who then report the income on their personal tax returns. This is often done to avoid double taxation at both the partnership and individual level. Therefore, LPs are typically not subject to income tax as a separate entity.

The LP Is Almost Always a "Mere Conduit" for Income