Tax Law
A group of partners recently sold an office building that they jointly owned to a property developer. As a result of the sale, there may be capital gains tax due.
Who among the partners is responsible for paying any capital gains tax that may arise from the sale of the office building?
A group of partners recently sold an office building that they jointly owned to a property developer. As a result of the sale, there may be capital gains tax due.
Who among the partners is responsible for paying any capital gains tax that may arise from the sale of the office building?
All of the partners individually, based on their share of the gain.
(D) The partners in a partnership are taxed individually based on their share of the gain. A partnership is not taxed as an entity; instead, it is a combination of individuals who are effectively taxed as sole traders.
The partners are not taxed jointly, and each individual is responsible for paying capital gains tax independently.
Since all partners own the asset, they must report their respective share of any gain on their individual self-assessment tax return.
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