All income that flows-through from a partnership to all partners is always subject to the self1employment...
Which of these are true and why 8. In a general partnership all the partners are classified as "general partners," each of whom has unlimited liability for the debts of the partnership. 9. The partnership's beginning tax basis in property it receives from a partner in exchange for an interest in partnership capital is the contributing partner's adjusted basis in the property. 10. As a general rule, when a person obtains an interest in partnership capital through rendition of services,...
Partnership income is taxed as a separate legal entity, then, the partners pay taxes again as their personal income. True or False True False
68. Which of the following statements is false? Partners may contribute additional capital to the partnership in the form of cash and other assets Withdrawals of cash by the partners are called "drawings." The partnership income statement includes revenues and expenses but not salary paid to partners A) B) C) D) All of the above are true 69. Which of the following statements about the allocation of partnership profit or loss is false? A) Partnership agreements sometimes allow for a...
U.S. citizens generally are subject to tax on all income whether it is generated in the United States or in foreign countries. True or False?
a. Under a General Partnership, partners are liable only to the extent of their capital contributions. True False b. Under a Limited Liability Limited Partnership, the liability of all partners is limited to the amount of their investments in the firm. True False c. When a partner ceases to be associated in the carrying on of the partnership business, this is called: A. Joint and several liability B. A fiduciary duty C. Winding up D. Dissociation d. Which of the...
250.000 gross income Carol and Candace are equal partners in Peach Partnership. In the current ver Peach had a profit of $25.000 $175,000 operating expenses) and distributed 325.000 to each other. Peach must pay tax on $75,000 of incom True
Section 736(a) retirement payments to a retired partner for past services rendered to the partnership : a. Are always subject to self-employment tax at the recipient partner level b. Are never subject to self-employment tax at the recipient partner level c. Are always federal-income -tax-free to the recipient partner d. Can be structured to be exempt from self-employment tax with careful planning
With regard to fringe benefits offered to partners, which of the following is correct? a. partnership-paid insurance premiums provided as compensation for services rendered to the partnership are generally treated as Section 707 (c) guaranteed payments to the recipient partner, b. Partners are treated the same as garden variety employees for all fringe benefit purposes, c. All partnership-paid fringe benefits are federal income tax free for partners, d. All partnership-paid fringe benefits are fully taxable for partners
If the net income of a partnership is less than the total of the allowances provided by the partnership agreement, the difference must be divided among the partners in the income-sharing ratio. True False
If partnerships retain their after-tax earnings, when will partners be taxed on the earnings? A)Partners will be taxed when they sell their shares at a gain. B)Partners will be taxed when they elect to be taxed on undistributed retained earnings. C)Partners will be taxed when the earnings are distributed to the partners. D)Partners will be taxed as partnership earnings are allocated to them at the end of the year whether they actually receive a distribution or not. Qualified business income...