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Www Formalu Comforms91829Pass through Entity Return of Income and Return of 2021

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hello and welcome to this session in which we will discuss the concept of a partnership as a flow through entity what does that mean well here's what we need to know about partnership partnership is not required to pay federal income tax well that's excellent so why don't we all operate as a partnership if that's the case well the partnership don't pay the taxes but someone else will pay the taxes each partner is responsible for reporting their proportionate share of a partnership income or loss on their personal tax return and pay any tax liability that arises well yes the partnership they complete a form called 1065 an informational return as we will have the revenues minus your expenses they will get to the net income let's assume this partnership will have two partners Adam and Noah and for Simplicity assuming 50 ownership now let's assume the revenue is 3 million expenses were 1 million so net income is 2 million for this com

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