Chapter 19 Questions - Income Tax II Name _Christian...

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Income Tax II Name __Christian Yimgnia Chapter 19 Questions Explain and/or discuss the following based on reading the chapter and viewing the power points. Be thorough with your answers. You may take all the space you need. 1. Explain the characteristics of a general partnership. A partnership is formed when two or more people who carry on as co-owners of a business for profit merge. There are no formal requirements to be met at the time of the organization because the partnership’s existence is based on the business relationships of the participants. A partner is any participant of a partnership, including members of joint ventures, syndicates, pools, and like groups classified for tax purposes as partnerships. Allocation of income, gain, loss, deductions, or credits is determined by the terms in partnership agreement. Under the “check the box” regulation, business owners that have not incorporated may elect to be taxed as either a partnership or a C corporation. The commissioner may excuse certain partnerships from the necessity of filing a partnership return. 2. Explain the characteristics of a limited liability partnership. A limited liability partnership is a general partnership in which the general partners are not liable for any malpractice or torts committed by other partners. General partnerships and limited liability partnerships are usually the best option for service providers such as accountants or attorneys. 3.
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This note was uploaded on 03/05/2012 for the course INCOME TAX 4404 taught by Professor Bulie during the Spring '11 term at University of Minnesota Duluth.

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Chapter 19 Questions - Income Tax II Name _Christian...

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