For tax purposes, in computing the ordinary income of a partnership, a deduction is allowed for:

Question

Quizplus · Accepted Answer

The deduction allowed for tax purposes in computing the ordinary income of a partnership is payments to partners for the services provided to the partnership. This deduction is determined without regard to the income of the partnership. Therefore, option A is the correct choice. Option B is incorrect because the net operating loss deduction is not a deduction allowed for computing the ordinary income of a partnership, but rather a deduction for calculating the taxable income. Option C is incorrect because contributions to charitable organizations are deductible for individuals and corporations but not for partnerships. Option D is incorrect because personal exemptions are not deductible for tax purposes. Option E is incorrect because there is no other deduction allowed for computing the ordinary income of a partnership except option A.

For Tax Purposes, in Computing the Ordinary Income of a Partnership