Pass-through Taxation*

2015 07 01 | Category: Offshore Glossary

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Pass-through Taxation*
A taxation situation where the income to the entity is not taxed at the entity level; however, the entity does complete a tax return. The income or loss as shown on this return is ‘passed through’ the business entity to the individual shareholders or interest holders, and is reported on their individual tax returns. S corporation and LLC are both pass-through tax entities.


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