Question

Mark and Matt co-own an auto repair shop 50-50. They schedule their own customers, use their own tools and supplies, and collect payments from their own customers. They each pay half of the utilities and the property taxes.

(1) Mark and Matt are a partnership because they co-own the business and both work at the location.

(2) Mark and Matt are co-owners of the property but run their businesses independent of each other. They split certain building expenses. They are not a partnership.

(3) Mark and Matt are a partnership and must file a form 1065.

(4) Mark and Matt last file as a partnership and set up a formal agreement because they split the cost of the utilities and property taxes.

Answer 1

Answer :

Option(2) is Correct from the Given Options . That is

Mark and Matt are co-owners of the property but run their businesses independent of each other. They split certain building expenses. They are not a partnership .

explanation for the above -

The Object of business is to go into some business and acquire benefits. Here , there is no business Purpose and target of gaining benefits between Mark and Matt . Co - Ownership isn't intended for business purpose . There is basically responsibility for property by in excess of one individual .