Partnership Tax CPA Denver Wheat Ridge
Ordinary business income from a partnership is generally subject to the self-employment tax when it is passed through to general partners.
One thing that surprises the owners of many partnerships when their first tax season rolls around is the fact that partners get taxed on their allocated share of the partnership’s profit, even if nothing was distributed to them.
Profits and losses in a partnership are not required to be split evenly between the partners. The partners can choose to split the profit or loss in any way they choose.