Partners of a partnership:
A)are not liable for all of the partnership's obligations.
B)are entitled to income of the partnership,which must be reported on their individual federal income tax returns.
C)are not permitted to deduct partnership losses on their individual federal income tax returns.
D)can create a partnership only by complying with a statute.

Question

Quizplus · Accepted Answer

All of the income of the partnership is income to its partners and must be reported on the individual partners' federal income tax returns whether or not it is distributed to the partners.

Partners of a Partnership