Basic Principles of Partnership Taxation

Based on the article Basic principles of partnership taxation by Casey et al. (2008), Partnership taxation forms a type of taxation that identifies when a person is either a tax professional or not. In the article, partnerships are considered non-tax entities since the taxes are transferred to the partners instead of the business they carry out in the economy. In general, the article partnership is not subject to income tax since the individuals involved in doing the business are always taken liable for the income tax by the government in their different and respective capacities.

As opposed to the article, the major advantage that can be realized by forming a partnership is the planning opportunities available in creating the business structure. There are aspects of business structure highlighted in the article in the discussion about partnership. Similarly, several features of partnership have been addressed in the textbook reading but are not highlighted in the provided article Basic principles of partnership taxation by Casey et al. (2008). For instance, some of the basic features of partnership in the article include equal profit and loss sharing ratio among the members of a general partnership.

Another difference between the article and the textbook discussion about a partnership is the existing type of partners. From the book, partners are classified into a general partnership, limited liability partnership, limited partnership, and limited liability company. However, the existing types of partnerships have not been identified in the article provided. Despite the differences, the book and the article present similar discussions on the features, tax benefits, and individual advantages realized from the partnership by the partners.

References

Casey, R., Casper, F., Caudill, W., Jones, D., Klein, W., & Pickron, M. (2008). Basic principles of partnership taxation., Business Entities, 10(3), 22-29. Retrieved from ABI/INFORM Global.

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Basic Principles of Partnership Taxation

Review the following article: Casey, R., Casper, F., Caudill, W., Jones, D., Klein, W., & Pickron, M. (2008, May). Basic principles of partnership taxation.,Business Entities, 10(3), 22-29. Retrieved July 16, 2010, from ABI/INFORM Global. (Document ID: 1512954131). (Course Pack)

Basic Principles of Partnership Taxation

For discussion:

• What are the differences between the article and the reading from your textbook on partnerships?