Donald Owns a 60% Interest in a Partnership That Earned

question 37

True/False

Donald owns a 60% interest in a partnership that earned $230,000 in the current year. He also owns 60% of the stock in a C corporation that earned $230,000 during the year. Donald received $50,000 in distributions from each of the two entities during the year. With respect to this information, Donald must report $188,000 of income on his individual income tax return for the year.

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Definitions:

Clearinghouse

A central agency for the collection, classification, and distribution of information or transactions.

Incorrect NPI

Refers to an error in the National Provider Identifier, a unique identification number for health care providers in the United States.

Abuse

The intentional mistreatment or harmful behavior towards another person, animal, or entity that can be physical, emotional, sexual, or neglectful.

Without Intent

An action or outcome occurring without the intention or purpose of causing it, often relevant in legal contexts regarding liability.