A partner's self-employment earnings (loss) may be affected by her share of ordinary business income (loss) and any guaranteed payments she receives. The impact of these amounts typically depends on the status of the partner. Which of the following statements correctly describes the effect these items have on the partner's self-employment earnings (loss)?

Question

Quizplus · Accepted Answer

For a general partner, both ordinary business income (loss) and guaranteed payments affect self-employment earnings. For a limited partner, only guaranteed payments affect self-employment earnings.

A Partner's Self-Employment Earnings (Loss) May Be Affected by Her