Ask Question
BusinessBusiness
2 January, 23:12

The credits and deductions of the company are passed through to partners to file on their individual tax returns. Credits and deductions are divided by the percentage of individual interest each partner has in the company. This is an example of a benefit enjoyed by which type of organization?

+3
Answers (1)
  1. 2 January, 23:28
    0
    Answer: The Limited Liability Company enjoys this benefit.

    Explanation:

    A Limited Liability Company is a hybrid organization that combines the features of a corporation with those of a partnership or sole proprietorship.

    The credits and deductions of the company are passed through to partners to file on their individual tax returns.

    Credits and deductions are divided by the percentage of individual interest each partner has in the company.

    Unlike shareholders in a corporation, LLCs are not taxed as a separate business entity. Instead, all profits and losses are "passed through" the business to each member. LLC members report profits and losses on their personal federal tax returns, just like the owners of a partnership would.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “The credits and deductions of the company are passed through to partners to file on their individual tax returns. Credits and deductions ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
A major game software firm experienced conflict between the young Internet-savvy employees who designed the games and the older computer-illiterate executives who ran the company.
Answers (1)
Claude has been elected student body president and really likes to lead and persuade people. His strongest Holland career type is? A. conventional B. social C. enterprising D. investigative
Answers (1)
Tracy owns a nondepreciable capital asset held for investment. The asset was purchased for $ 250 comma 000 six years earlier and is now subject to a $ 75 comma 000 liability.
Answers (1)
Which of the following statements is correct? A. Actual investment equals planned investment when inventories rise. B. Actual investment and planned investment are always equal. C.
Answers (1)
Linda installed a special pool for the hydrotherapeutic treatment of severe arthritis, as prescribed by her doctor. The cost of installing the pool was $20,000, and her insurance company paid $5,000 toward its cost.
Answers (1)
New Questions in Business
Before prorating the manufacturing overhead costs at the end of 2020, the Cost of Goods Sold and Finished Goods Inventory accounts had applied overhead costs of $59,300 and $38,000 in them, respectively.
Answers (1)
The Clean and Shiny Car Wash Company charges $95 to detail a car They detailed 75 cars during the past month. Their expenses are given in the table below Expense Rent of Space Supplies Advertising 1.
Answers (2)
J has a life policy with the Guaranteed Insurability rider. J has just celebrated their 42nd birthday and realizes that she wants to use her rider and buy more death benefit. Which of the following will apply to J's request? A.
Answers (1)
Which of the following is not a reason some people believe that capital punishment should be abolished? to free up spaces spiritual beliefs the financial cost the idea of new evidence could surface that would prove the criminal innocent
Answers (2)
The fiscal year-end 2016 financial statements for Walt Disney Co. report revenues of $55,632 million, net operating profit after tax of $9,954 million, net operating assets of $58,603 million.
Answers (1)
Home » Business » The credits and deductions of the company are passed through to partners to file on their individual tax returns. Credits and deductions are divided by the percentage of individual interest each partner has in the company.
Sign Up Forgot Password?