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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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
Which one of the following statements regarding partnership taxation is incorrect? a.Partnership income is comprised of ordinary partnership income or loss and separately stated items. b.A partnership is required to file a return with the IRS. c.A partner's profit-sharing percentage may differ from the partner's loss-sharing percentage. d.A partnership is a tax-paying entity for Federal income tax purposes.
Which of the following regarding partnership taxation is INCORRECT? Question 16 options: A partnership is a tax paying entity for Federal income tax purposes. Partnership income is comprised of ordinary partnership income or loss and separately stated items A partnership is required to file a return with the IRS. A partner’s profit-sharing percent may differ from the partner’s loss-sharing percent. All of these statements are correct.
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
The difference between partnership and corporation can be best described in which of the following statements? a. In a corporation, income is taxed at the corporate level, whereas, in a partnership, income is taxed twice. b. In a partnership, income is taxed once at the individual level; whereas, in a corporation, income is taxed twice c. Income from both forms of organizations is double-taxed. d. In a partnership, income is exempted from tax up to $10 million; whereas, in a corporation, income is taxed twice
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.
Ay 2. Mcq Which of the following items may be subject to the sef-employmant tax? A partners distributive share of partnership income b. Capital gains c. Interest income d. Dividends income E. None of these choices are correct
Which statement is true? In computing the net taxable income of a corporation availing of the optional standard deduction, the OSD shall be deducted from the total sales or revenue. A corporate taxpayer is not qualified to avail of NOLCO as this is only applicable to individual taxpayers. The income of a business partnership shall be taxed with the regular corporate income tax and the share of each partner from the income of the partnership shall be subject to the regular income tax as well. Generally, government owned or controlled corporations are taxable.
Which of the following statements regarding partnerships is true? a. Partnership income is taxed in the partnership. b. Partnership losses cannot be offset against the partners other income c. Partnership income is included in a partners income in the year of disbursement. d. Partnerships may earn business income, property income, and capital gains.
Indicate whether the following statements are "True" or "False" regarding self-employment tax and § 1411 tax. a. Self-employment income includes a general partner's distributive share of income from a partnership's trade or business, whether or not that income is distributed. b. For both general and limited partners, any guaranteed payments for services are subject to the self-employment tax. c. Certain types of income allocated from a partnership are treated as net investment income, including dividends, interest, passive income, and gains from property not used in a trade or business. d. A partner's distributive share is not considered net investment income if the partner is a "passive" investor, as defined under § 469.

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