Which of the following amounts are not subject to self-employment tax?
A) General partner's share of partnership income
B) Limited partner's share of partnership income
C) Sole proprietor's income from business activity
D) Guaranteed payment to general partner

Question

Quizplus · Accepted Answer

Limited partners are not involved in the daily operations of the partnership and are not considered self-employed, therefore their share of partnership income is not subject to self-employment tax. The other choices (A, C, and D) are subject to self-employment tax.

Which of the Following Amounts Are Not Subject to Self-Employment