Nate is a partner in a partnership that received $5,000 of interest income this year. Nate's share of the interest is $1,000, and he should report this income on his individual return as:

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Business

Chance Harvey

23 November, 10:00

Nate is a partner in a partnership that received $5,000 of interest income this year. Nate's share of the interest is $1,000, and he should report this income on his individual return as:

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Answers (1)

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Jamar Chung · Answer 1

Interest Income

Explanation:

Based on the described scenario it can be said that Nate should report this income on his individual return as Interest Income. This is the amount of interest that the individual has earned in a specific period of time. This is what Nate has made by collecting his share of the interest and should be reported as such since Income from flow-through entities retains its character when reported on individual returns.