RSM424H1 Lecture Notes - Lecture 16: Double Taxation, Retained Earnings, Net Income
Document Summary
Definition of limited partnership: general partner is: fully liable for the obligations of the partnership, and is responsible for managing its business affairs. If the accumulated profits are distributed to the partners, those profits are not taxed again: b. Tax treatment of partnership income and losses: the tax treatment of income and losses depends on the tax position of each separate. Income allocated retains its source and characteristics. partner: a special restriction applies to the use of losses: Limited partners are entitled to claim losses only to the extent of their investment in the partnership: c. impact on decision making. Limited partnerships are different in three ways: some partners have limited liability; while all of the partners in a standard partnership are fully exposed, a limited partnership must have some partners who are passive investors. New ventures often suffer start-up losses as part of their development.
