COMM 304 Lecture 1: Drawback part 2
Document Summary
Drawback if anyone of the partners dies the partnership dies too if there is any debt then the partner"s estate is responsible for the debt. Under the act each partner is deemed equal and is responsible for tax on their part unless stated in the partnership agreement. E. g. , the amount drawn out is irrelevant because taxed on what % should have taken out as your share. Ex. take out ,000 but share is really. ,000 then pay taxes on ,000 not ,000. ,000 and share is ,000 would pay tax on the $ 100,000: partnership agreement can provide if one partner causes a loss or injury will be solely responsible for the loss. Public person has no rights under this agreement so can sue all four partners in the partnership but then the other three partners can sue the one that got them sued.
