Brent is a limited partner in BC Partnership. His distributive share of partnership income and his guaranteed payment for the year are as follows: $$\begin{array} { | c | c | }
\hline \text { Ordinaryincome } & \$ 30 ,000 \
\hline \text { Short- term capital gain } & \$ 18 ,000 \
\hline \text { Guaranterd payment } & \$ 36 , 000\
\hline
\end{array}$$ What is his self- employment income?

Question

Brent is a limited partner in BC Partnership. His distributive share of partnership income and his guaranteed payment for the year are as follows: $$\begin{array} { | c | c | } 
\hline \text { Ordinaryincome } & \$ 30 ,000 \
\hline \text { Short- term capital gain } & \$ 18 ,000 \
\hline \text { Guaranterd payment } & \$ 36 , 000\
\hline
\end{array}$$ What is his self- employment income?

Quizplus · Accepted Answer

Guaranteed payments are considered self-employment income for a limited partner, while distributive shares of partnership income are not. Therefore, Brent's self-employment income is $36,000.

Brent Is a Limited Partner in BC Partnership What Is His Self- Employment Income? A) $48,000 B) $66,000

Brent Is a Limited Partner in BC Partnership What Is His Self- Employment Income?
A) $48,000
B) $66,000