What is an electing large partnership? What are the advantages to the partnership of electing to be taxed under the electing large partnership rules?
What will be an ideal response?
An electing large partnership is a partnership that is not a service partnership, is not engaged in commodity trading, has at least 100 partners, and files an election to be taxed as an electing large partnership. The primary advantage to the partnership of electing to be an electing large partnership is that the reporting of income to the large number of partners is simplified. Relatively few items are separately stated so that the reporting process is more difficult than a corporation but easier than a nonelecting partnership.
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a. True b. False Indicate whether the statement is true or false
Which is correct?
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What will be an ideal response?