Income Tax Fundamentals 2020 (with Intuit Proconnect Tax Online)
Income Tax Fundamentals 2020 (with Intuit Proconnect Tax Online)
38th Edition
ISBN: 9780357108239
Author: Gerald E. Whittenburg, Martha Altus-Buller, Steven Gill
Publisher: Cengage Learning
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Chapter 10, Problem 18MCQ
To determine

Introduction: Partnership forms when more than one person thrives to achieve the same objective as a business. The only difference between a partnership and a corporation is that the corporation will enjoy the benefits of limited liability but faces dual taxation first at the company level and second at the shareholders level, whereas in partnership, partnerships are taxed only at the partners level. Registration of partnership is not mandatory as it can be formed by mere handshake only. To carry a partnership with limited liability, it is important to register the business as a “limited liability partnership”.

To choose: The situation in which the loss or gain from the transaction between partner and partnership is disallowed.

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