Section 736(a) retirement payments to a retired partner for past services rendered to the partnership...

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Accounting

Section 736(a) retirement payments to a retired partner for past services rendered to the partnership :

a. Are always subject to self-employment tax at the recipient partner level

b. Are never subject to self-employment tax at the recipient partner level

c. Are always federal-income -tax-free to the recipient partner

d. Can be structured to be exempt from self-employment tax with careful planning

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