Lisa is a self-employed architect who also is a partner in a successful architectural firm. She...
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Lisa is a self-employed architect who also is a partner in a successful architectural firm. She receives a substantial part of her income from her partnership interest, which is a pass-through entity. Which of the following tax implications is true? A Partnership income for active partners is subject to self-employment tax. B Since the architectural firm is a pass-through entity, Lisa's income from it is not subject to self-employment tax. C All partnership income is considered passive and not subjected to self-employment tax. D Only a portion of the income is subject to self-employment tax, depending on Lisa's role in the firm. Lisa is a self-employed architect who also is a partner in a successful architectural firm. She receives a substantial part of her income from her partnership interest, which is a pass-through entity. Which of the following tax implications is true? A Partnership income for active partners is subject to self-employment tax. B Since the architectural firm is a pass-through entity, Lisa's income from it is not subject to self-employment tax. C All partnership income is considered passive and not subjected to self-employment tax. D Only a portion of the income is subject to self-employment tax, depending on Lisa's role in the firm.
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Related Book For
Macroeconomics
ISBN: 978-0321675606
6th Canadian Edition
Authors: Andrew B. Abel, Ben S. Bernanke, Dean Croushore, Ronald D. Kneebone
Posted Date:
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