Which of the following most accurately describes the federal tax consequences of a partnership/LLC?OOA. Partnerships are disregarded as entities for tax purposes.B. LLCs are subject to the same tax consequences as partnerships.OC.The characteristics of income and deduction items flow through to the partners of apartnership.D. Partnerships are subject to double taxation.E

Option A is incorrect: Tax regulation for partnerships: While partnerships are technically…

Answered: Which of the following most accurately…

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter14: Choice Of Business Entity—operations And Distributions

Section: Chapter Questions

Problem 11DQ

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Similar questions

Income and loss from which of the following entities is passed through and taxed on the individual's personal tax returns? S corporation Partnership Sole proprietor All of the above
Partnerships: a.Are not taxable entities. b.Are taxed in the same manner as individuals. c.File tax returns on Form 1041. d.File tax returns on Form 1120.
For Federal income tax purposes, a distribution from a partnership to a partner is treated the same as a distribution from a C corporation to its shareholders. True False
In general terms, indicate how the following separate entities are subject to the Federal income tax. a. C corporations are separate taxable entities, (but not district from/distinct from) their shareholders. b. How are partnerships taxed?Income & losses pass-through to the partners/at the partnership level/at the partnership and partner level . c. S corporations ( never/normally/rarely) incur Federal income tax liabilities. d. Fiduciary entities are subject to Federal income tax when income (exceeds expenses/ is distributed to the beneficiaries/ is retained by the entity) .
Which of the following statements is true? a. S corporations are typically subject to one level of tax at the corporate level. b. Partnerships are typically subject to one level of tax at the partner level. c. LLCs and LLPs must be taxed as C corporations. d. REITs typically pay tax at the entity level. e. All of the above are true.
TRUE OR FALSE Double taxation is when partnership earnings are taxed when earned by the business and then taxed again when distributed to the owners.
Which of the following is correct? a.A partnership is a reporting entity but not a taxable entity. b.A partnership is a taxable entity and a reporting entity. c.A corporation is a reporting entity but not a taxable entity. d.An individual is a reporting entity but not a taxable entity.
19. Which of the following statements is not correct? A. As a rule, co-ownership is not subject to income tax because the activities of the co-owners are limited to the preservation and enjoyment of the property and the collection of the income therefrom. B. All partnerships, no matter how created or organized are considered corporations subject to corporate income tax. C. When the co-owners invest the income of the property co-owned in a business or any income-producing properties or activities constituting themselves into a business partnership, such partnership is consequently subject to tax as a corporation. D. A co-owner is subject to income tax on his share in the net income of the co-ownership actually or constructively received.
54. What are the 4 business structures when filing tax returns: A) Schedule C, Partnership form 1065, S Corporation 1120 s, Corporation 1120 B) Schedule K-1, 1040 Individual tax returns, Corporation 1120 C) 1065, K-1, 1120 and Schedule E 55. When can partnership/S corporation income can be used. Choose best answer : A) Rental income and loss shows profit B) Borrower has accessed the income via cash distributions C) Positive income trends
Why would smaller partnerships and other businesses for that matter use only the tax basis of accounting, which does not follow GAAP?
1.The definition of gross income in the tax law is: A. All items specifically listed as income in the tax law B. All cash payments received for goods provided and services performed C. All income from whatever source derived D. All income from whatever source derived unless the income is earned illegally 2.Which of the following is not taxable for income tax purposes? A.Prizes B.Severance pay C.Gifts D.Partnership income E.All of the above are taxable 3.All of the following items are taxable to the taxpayer receiving them, except: A.Life insurance proceeds B.Unemployment compensation C.Embezzled funds D.Prizes E.Gambling winnings
Select the best answer. Which of the following statements regarding the characteristics of various entities is false? O O B. A general partnership is a pass-through entity. The income of a sole proprietorship is taxed to its owner because it has no separate legal entity from its owner. D. State taxability for S corporations makes no distinction between S and C corporations. A. A C corporation enjoys no special tax status. O C. O Question Q 13 Submit Answers 100% Complete

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