By: Martin M. Shenkman, CPA, MBA, JD

A syndicate, joint venture, group, or other arrangement in which two or more investors join their money and skills to carry out a business as co-owners and to earn a profit. A partnership is generally treated as a flow-through (conduit) so that the partners each report their share of partnership income or loss on their personal tax returns. The partnership files a Form 1065 as an information report with the IRS but doesn't pay any tax. An election is available to avoid being taxed as a partnership.

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