Question 43:

In general, which of the following statements regarding the tax treatment of partnerships is correct? (Best option).

a) Partners in a partnership are not considered to be self-employed. b) The partnership must furnish copies of a Schedule K-1 to the partners by the partnership return due date (or extended due date). If a K-1 is not issued, a $280 penalty for each partner will be charged. c) Limited partners are not subject to Self-Employment Tax on any of their income. d) If a general partner is a member of a partnership that carries on a trade or business, and they work in that business, the partners distributive share of the income or loss from the business is not self-employment income (and is not subject to Self-Employment Tax).

Question 54

As a professional tax preparer, its your goal to become aware of the latest tax news affecting individuals and small businesses in 2020. With this in mind, the latest CARES Act tax law established that there are huge benefits of business activities due to the Coronavirus pandemic.Which of the following business activities will most benefit from this law (best option)?

a) Sick Leave and Family Leave Credit. b) Deferral Payment of the Social Security tax. c) PPP loans are forgiven. d) The General Business Credit.