1. How is a partnership taxed?

At separate partnership rate

At individual rates

At corporate rates

It is not taxed as a separate entity

2. Which is not true about capital gains and losses for individuals?

A maximum capital loss of $3,000 per year may be deducted with carry forward provisions.

Capital gains are taxed at lower rates than ordinary income.

Gains on the sale of a personal residences are excluded up to $250,000 single; $500,000 married filing jointly)

A short term capital asset is one that has been held over a year