A general partner's share of ordinary business income is similar to investment income; thus, a general partner only includes their guaranteed payments as self-employment income.
General partners report guaranteed payments and their share of ordinary business income as self-employment income because they are actively involved in managing the partnership.

Question

Quizplus · Accepted Answer

General partners report both guaranteed payments and their share of ordinary business income as self-employment income, not just guaranteed payments, because they are actively involved in managing the partnership.

A General Partner's Share of Ordinary Business Income Is Similar