Why Do Partners Sometimes Report More Income On Tax Returns Than They Receive In Cash?

If you’re a partner in a business, you may have come across a situation that gave you pause. In a given year, your tax returns may show that you owe more on partnership income than was distributed to you from the partnership in which you’re a partner. Why is this? The answer lies partnership taxation. … Continue reading “Why Do Partners Sometimes Report More Income On Tax Returns Than They Receive In Cash?”