The partners are liable for the tax on the partnership income, regardless of whether the income...

The partners are liable for the tax on the partnership income, regardless of whether the income is actually distributed to them. true or false

Expert Solution

A partnership is the relationship existing between two or more persons who join to carry on a trade or business. Each person contributes money, property, labor or skill, and expects to share in the profits and losses of the business.

A partnership must file an annual information return to report the income, deductions, gains, losses, etc., from its operations, but it does not pay income tax. Instead, it "passes through" any profits or losses to its partners. Each partner includes his or her share of the partnership's income or loss on his or her tax return.

Partners are not employees and should not be issued a Form W-2. The partnership must furnish copies of Schedule K-1 (Form 1065) to the partners by the date Form 1065 is required to be filed, including extensions.

If you are a partnership or a partner (individual) in a partnership, use the information in the charts below to help you determine some of the forms that you may be required to file.

From the above information it clear that the answer is false

ekkarill92 answered 1 year ago

An investor, who is liable to income tax at 20% but is not liable to capital...

An investor, who is liable to income tax at 20% but is not liable to capital gains tax, wishes to earn a net effective rate of return of 5% per annum. A bond bearing coupons payable at the end of every half-yearly at a rate 6.25% per annum is available. The bond will be redeemed at par on a coupon date between 10 and 15 years after the date of issue, inclusive. The date of redemption is at the option...

1)progressive income tax is one that A.taxes income at a constant rate, regardless of the level...

1)progressive income tax is one that A.taxes income at a constant rate, regardless of the level of income. B.taxes income so that the average tax rate increases with the level of income. C.taxes all income above the guaranteed minimum at an average rate that decreases with income. D.taxes income so that the average tax rate decreases with the level of income. 2)An income tax for which the average tax rate decreases with income is called a A.flatminus−rateincome tax. B.regressive income...

Partners in the ABCD Partnership decided to dissolve their partnership. On that date, the partners had...

Partners in the ABCD Partnership decided to dissolve their partnership. On that date, the partners had the following pre-liquidation capital balances: Partner A $28,000 Partner B 41,000 Partner C 18,000 Partner D 12,000 A, B, C, and D share residual profits and losses in a 4:3:2:1 ratio. Liabilities at the date of dissolution total $100,000, and noncash assets equal $105,000. During the first month of liquidation, assets having a book value of $55,000 were sold for $31,000. During the second...

the BDC partnership has 3 partners with the following partnership interest percentages and tax-year ends: B...

the BDC partnership has 3 partners with the following partnership interest percentages and tax-year ends: B has a 35 percent ownership and a dec. 31 year end; D owns 45 percent and has a June 30 year end, and C owns 35 percent and has a Oct. 30 year end. What method must be used to determine the partnership year end and which year end is required?

Define a partnership for tax purposes. Summarize the rules for partnership income reporting

1,Which of the following persons is NOT liable for Canadian income tax under Part I of...

1,Which of the following persons is NOT liable for Canadian income tax under Part I of the Income Tax Act? Pheap Chom, an individual who has resided in Canada for the past 15 years. Chom Incorporated, a Canadian resident corporation. Phon Im, a resident of the United States who earns employment income in Canada. Bunly Im, a resident of the United States who earns interest income in Canada. 2 Which of the following is an argument in favour of a...

Tammy, Rebecca, and Miriam are partners in TRM Consulting, LLC, which will receive partnership tax treatment...

Tammy, Rebecca, and Miriam are partners in TRM Consulting, LLC, which will receive partnership tax treatment as the default for tax purposes. Tammy, Rebecca, and Miriam contribution $50,000, $25,000, and $25,000 of cash. In addition, the partnership agreed to take on a non-recourse loan of $20,000 from Miriam. Rebecca would like to contribute services to the partnership and is considering asking for additional profits interest in return for the service. Without the service, Tammy, Rebecca, and Miriam’s profits interests would...

Under the doctrine of ______________, a partner in a partnership can be sued and held liable...

Under the doctrine of ______________, a partner in a partnership can be sued and held liable for conduct which he did participate in, ratify, or know about: a. vicarious liability b. joint and several liability c. strict liability d. agency

Partnership Income Allocation Whitman and Greene are partners in a real estate venture. At January 1,...

Partnership Income Allocation Whitman and Greene are partners in a real estate venture. At January 1, 2020, their respective capital balances were $200,000 and $245,000. Their partnership agreement provides that Whitman is to receive a guaranteed salary of $100,000, and that remaining profits after the salary are to be shared in a 2:3 ratio. Partnership operations for the year 2020 resulted in income of $75,000, before distributions to partners. Whitman’s salary is paid in cash during the year, but there...

You are an accountant at a partnership. The partnership has four partners, and, according to the...

You are an accountant at a partnership. The partnership has four partners, and, according to the partnership agreement, all have an equal stake in the company. This partnership was approached by a corporation that would like to acquire them by a stock acquisition. The partnership has no authorized stock, and the corporation does not want to pay cash for the partnership. The partnership is valued at $4,000,000 today. Reading the partnership agreement, you find that the partnership can be terminated...

Question