- Your client, Sunshine, gets a check for $3,100 twice per month from Tink, LLC, that pays her a compensation for services to LLC. The amount of the check is not based upon the profits of Tink, LLC. Since Sunshine knows you are currently in a business entities tax class at California University, she emails you, Why doesnt the LLC withhold income taxes and payroll taxes from the $3100 check that I get twice each month? Give a response back to this question

- Is cash method of accounting a method that can be used for a partnership? And what restrictions could they face?

- Partnership losses pass-through to partners just like partnership income does. Nevertheless, a partner may be limited as to deducting the partners share of losses from the partnership. Name limitations that the partnership can face?

- Kasey and Jasmyn have a partnership and are equal partners. Kasey outside basis is $170. Jasmyns outside basis is $130. The partnership distributes $140 in cash to Kasey and $140 in cash to Jasmyn in a nonliquidating distribution. What tax consequences are their for the distributions to Kasey and Jasmyn?