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Reporting partnership income

A partnership does not pay income tax on its income and does not file an income tax return.

Instead, each partner files an income tax return to report his or her share of the partnership's net income or loss.

This requirement to report his or her share of the partnership's net income remains whether the share of income was received in cash or as a credit to a capital account in the partnership.

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Date Modified: 2007-01-02

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