Which of the Following Statements Is True About Taxes in a Limited

question 67

Multiple Choice

Which of the following statements is true about taxes in a limited partnership?

• A)Both limited partners and general partners are double taxed.
• B)Both limited partners and general partners pay taxes on their share of the profit.
• C)Both limited partners and general partners are double taxed,however,the amount of tax liability by limited partners is capped.
• D)Limited partners are not double taxed,but general partners are.
• E)General partners,but not limited partners,pay taxes for profits of the partnership.

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