SOLARSOLAR

TAX STATUSTAX STATUS

PAYING TAXES IS ONE OF THE MOST IMPORTANT DUTIES OF US CITIZENS

PARTNERSHIPS

AREARE

REPORTINGREPORTING

ENTITIESENTITIES

BUT

THEY ARE NOTTAX PAYING

ENTITIES

PAY NO TAXES AT PARTNERSHIP LEVEL

Partnership profits are

ultimately tax at individual’s

tax rate

EXAMPLEIF SARA OWNS 20% OF

A PARTNERSHIP, THEN

SHE’S RESPONSIBLE FOR PAYING 20% OF THE

TAXES

WE CALL IT???

“FLOW THROUGH”

YES! “FLOW THROUGH”

So, how do partners

pay taxes?

PARTNERS PAY TAXES AT THEIR

INDIVIDUAL TAX RATE

Each partner pays taxes at its individual rate

THERE IS NOPARTNERSHIP

TAX!!!