Samuel is the managing general partner of STU,in which he owns a 25% interest.For the year,STU reported ordinary income of $400,000 (after deducting all guaranteed payments).In addition,the LLC reported interest income of $10,000.Samuel received a guaranteed payment of $120,000 for services he performed for STU.How much income from self-employment did Samuel earn from STU?

Question

Quizplus · Accepted Answer

Samuel's self-employment income includes his share of the ordinary income and the guaranteed payment. His share of the ordinary income is 25% of $400,000, which is $100,000. Adding the guaranteed payment of $120,000, his total self-employment income is $220,000.

Samuel Is the Managing General Partner of STU,in Which He