For LLC taxed as prtnrshp, how do I get software to calculate SE tax on K-1 on ALL earnings for lmtd prtns? ProSeries only calcs SE tax on guaranteed payments. Thanks.

Forum|Forum|6 years ago
December 7, 2019
2 replies
20 views

No text available

ProSeries Professional

This topic has been closed for replies.

Best answer by poolcleaner

In general. limited partners do not pay self employment tax. They do pay SE on Guaranteed Payments. I would look to the partnership agreement since Sec. 301.7701-3 does not address whether an LLC making a partnership election is considered a general partnership or a limited partnership for federal income tax purposes and whether LLC members are considered general or limited partners.

P

poolcleanerAnswer

Level 8

In general. limited partners do not pay self employment tax. They do pay SE on Guaranteed Payments. I would look to the partnership agreement since Sec. 301.7701-3 does not address whether an LLC making a partnership election is considered a general partnership or a limited partnership for federal income tax purposes and whether LLC members are considered general or limited partners.

P

poolcleaner

Level 8

Before the advent of 199A the IRS would be looking to make as much as possible subject to SE tax, but logic says they may be going in the opposite direction now.

Sign up

Login with SSO

Let's get you signed in

Login with SSO