Paid out to investors in either legal form

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A corporation or partnership, in 2017, had pre-tax earnings that were half of the previous year earnings of $200,000 and the corporation was subject to a 35% income tax rate and an investor is subject to a 35% personal tax rate and a 10% capital gains tax rate, then what is the advantage to being a partnership (compared to a corporation) if all of the proceeds are paid out to investors in either legal form?

Reference no: EM132404401

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