When dividends received by a partnership are allocated to individual partners, these partners will gross up the amount received and be eligible for a dividend tax credit.

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When a partnership receives dividends, those dividends are distributed to the individual partners. Each partner will then gross up the amount received, adding the dividend income to their own taxable income. They will also be eligible for a dividend tax credit, which reduces the amount of tax they owe on the dividend income.

When Dividends Received by a Partnership Are Allocated to Individual