Llp Partner

[pookiemaw]

Client has a K-1 with $105,537 on line 14C. Checked are boxes H(domestic partner) and box G(limited partner). He actually for the company but is also an investor in the company. Does he pay SE tax? I have read but cannot find a specific answer. Thanks

[solomon]

Client has a K-1 with $105,537 on line 14C. Checked are boxes H(domestic partner) and box G(limited partner). He actually for the company but is also an investor in the company. Does he pay SE tax? I have read but cannot find a specific answer. Thanks

That is for the Non-Farm Optional Method of computing the SE Tax. Unlikely that will apply. Surely, there is more on the K-1 than just that line.

[JON]

Who does it

Partners, LLC members with 1065-is it the job of the partnership return preparer to determine who is subject to self employment taxes or is it the partner-members job to determine??? I think I see more saying the individual partner has that responsibilty, but who knows? Guaranteed payments can help the situation, but what is the good answer?

[DaveinTexas]

I have a similar situation

Partners, LLC members with 1065-is it the job of the partnership return preparer to determine who is subject to self employment taxes or is it the partner-members job to determine??? I think I see more saying the individual partner has that responsibilty, but who knows? Guaranteed payments can help the situation, but what is the good answer?

I have wondered about this for some time; who makes the determination? Is it our role/responsibility to determine if this partner is subject to SE tax?

I have a client who is a limited partner in his father's partnership. His sole income is his share of profits in the partnership; he draws distributions periodically throughout the year. I know that his participation in the business activity exceeds 750 hours a year, but he does not have the right/role to enter into contracts and he does not have personal liability for any business dealings or business debts. Is it safe to say that his income is not subject to SE tax?