RSM424H1 Lecture Notes - Lecture 15: Property Income, Retained Earnings, Capital Gain
Document Summary
Partnership structure impact on decision making: partnerships, different alternative structures for a business activity includes: Partnerships: useful for individuals who practice together in a profession and small business enterprise, also used to form part of a business structure of large public and private corporations. The entity itself is not directly liable for tax on its earned income. The standard partnership: definition and format, a relationship that exists between entities carrying on a business in common with a view to profit. Created when two or more entities jointly conduct ongoing business. Partners share in final net results in an agreed ratio: partnerships. A partnership is a self-(cid:272)o(cid:374)tai(cid:374)ed e(cid:374)tit(cid:455) holdi(cid:374)g assets, lia(cid:271)ilities, a(cid:374)d pa(cid:396)t(cid:374)e(cid:396)"s e(cid:395)uit(cid:455): b. If partnership is sued only particular partners may be held liable for their own negligence; other partners are protected: normally only permitted for regulated professions such as lawyers and accountings. Taxation of partnership operations: not a taxable entity.
