FACC 220- Final Exam Guide - Comprehensive Notes for the exam ( 47 pages long!)
29 Mar 2018
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Facc 220 business association & taxation part 2. Nothing to do with business, they are investors. Becoming more and more common as a way of conducting the professions. Follows all the rules of general partnerships aside from a few differences. You are not necessarily responsible for all of the debts of the partnership, you must be involved in the decision or in the project. Must have written partnership agreement that stipulates the llp. Partnerships don"t file tax returns (while the partners themselves do). Partnership is its own entity but will not file tax return (because it is not a tax payer under the tax act). However, like a corporation, revenues are coming in and partnership profit is allocated to the partners on which they report taxes individually. Partners receive draws during the year, which is based on a very conservative estimate of that year"s profits. Assets might be there (money in the bank account) but it is not liquid.
