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Partnership Taxation Partnerships are excellent business vehicles for small and medium-sized businesses. However, Partnership taxation is a maze of 'inside' and 'outside' values and bases. If overlooked, a seemingly harmless transaction could compound into disastrous tax results for partners and the partnership. A sensitive issue is the treatment of service-providing partners, whether they are entitled to a profits or partnership interest, and their tax treatment. Failure to follow the rules and guidelines set out by the partnership tax chapter of the IRC code will certainly bring misery to the partners and the partnership in the long run. |
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