Asked by Rebecca Dooley on Jun 25, 2024
Verified
Ordinary income from a partnership is not considered self-employment income.
Self-Employment Income
Income generated from business or trade activities where there is no employer-employee relationship, requiring the payer to file taxes independently.
Ordinary Income
Income earned from providing services, including wages, salaries, tips, and commissions, as well as income from investments that are not considered capital gains.
- Know when and how partnership income is considered self-employment income.
Verified Answer
CC
Carly CourtJun 29, 2024
Final Answer :
False
Explanation :
Ordinary income from a partnership is considered self-employment income for the partners who actively participate in the partnership. This is because the partners are seen as actively engaging in the business, and their share of the partnership income is subject to self-employment tax.
Learning Objectives
- Know when and how partnership income is considered self-employment income.
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