Bart Posted January 13, 2009 Report Share Posted January 13, 2009 I have a partnership that is a partner in another partnership. The partnership's K-1 from the other partnership does not show any income taxable as self employment income on like 14(a) of form K-1. The partnership I prepare has two partners. One is the managing partner and the other is a limited partner. Isn't the managing partner considered a general partner? Since the big partnership did not report any income subject to self employment tax, wouldn't that mean that my partnership would also not report any income subject to self employment tax? Or would the general partner have to pay self employment tax anyway? Quote Link to comment Share on other sites More sharing options...
mcb39 Posted January 13, 2009 Report Share Posted January 13, 2009 I have a partnership that is a partner in another partnership. The partnership's K-1 from the other partnership does not show any income taxable as self employment income on like 14(a) of form K-1. The partnership I prepare has two partners. One is the managing partner and the other is a limited partner. Isn't the managing partner considered a general partner? Since the big partnership did not report any income subject to self employment tax, wouldn't that mean that my partnership would also not report any income subject to self employment tax? Or would the general partner have to pay self employment tax anyway? Yes, the General Partner has to pay SE Tax. The K-1s should show the percentage of ownership. I had to read your post several times before I understood that one was a limited partner. He will have to pay tax on his income; though, probably not SE Tax. Not enough details. Quote Link to comment Share on other sites More sharing options...
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