A partnership is an arrangement where parties, known as business partners, agree to cooperate to advance their mutual interests. In general, the trust must pay income tax on any income its assets generate. But if the terms of the trust require it to pay out its income to a beneficiary, then the trust itself is entitled to get a deduction for any distributed net income. Tax Ease Plus can help clients determine the best strategy for handling partnerships, trusts, as well as out-of-state taxes.
