Question

Entities such as partnerships, LLCs, and S corporations are known as (1)-(2) entities because their income is reported on the owners' tax returns. Any expenses or losses from these entities are typically deductible (3) AGI." Fill in the blanks to complete the sentence:

a) (1) Separate; (2) Independent; (3) After
b) (1) Flow-through; (2) Pass-through; (3) Before
c) (1) Indirect; (2) Collective; (3) Along with
d) (1) Corporate; (2) Group; (3) Before

Answer 1

Partnerships, LLCs, and S corporations are known as flow-through entities because their income is reported on the owners' tax returns, and any expenses or losses from these entities are typically deductible before AGI.

Step-by-step explanation:

Entities such as partnerships, LLCs, and S corporations are known as (1) Flow-through entities because their income is reported on the owners' tax returns. Any expenses or losses from these entities are typically deductible (3) Before AGI.