Which of the Following Statements Is True About Taxes in a Limited

Multiple Choice

Which of the following statements is true about taxes in a limited partnership?

A) Limited partners are not double taxed, but general partners are.
B) Both limited partners and general partners pay taxes on their share of the profit.
C) Both limited partners and general partners are double taxed.
D) General partners, but not limited partners, pay taxes for profits of the partnership.
E) Both limited partners and general partners are double taxed, however, the amount of tax liability by limited partners is capped.