Question

nate is a partner in a partnership that received $5,000 of interest income this year. nates share of the interest is $1,000, and he should report this income on his individual return as: multiple choice business income. income from a partnership. interest income. dividend income because the partnership intends to organize next year as a limited liability company. all of these choices are correct.

Explanation:

Interest income received by a partner from a partnership is reported as interest income on the individual return. It is not business income (which typically comes from the active conduct of a trade or business), not income from a partnership in a general sense (as it is specifically interest), and not dividend income (dividends are from corporations).

Answer:

C. Interest income