Mary and Martha, who had been friends for years, decided to open a retail store to sell kitchen and bath items. In June, they spent $500 looking for a suitable location. They paid an attorney $1,500 to have their partnership agreement drawn up, and they paid an accountant $400 to set up their accounting system. During July, they searched for vendors for the merchandise they planned to carry and stocked their shelves. The store opened in August and was immediately successful. They paid the accountant $300 to prepare an income statement for August. 

What tax issues should the partnership consider with regard to beginning this business?

Answer rating: 100% (QA)

Tax issue to be considered with regard to beginning the business IRS form 1065 As partnerships are different from businesses they have some specific t... View the full answer