which of the following statements is correct according to the Tax Court? A) a general partner is...

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Finance

which of the following statements is correct according to theTax Court?
A) a general partner is not subject to self-employment tax.
B) a member of an LLC is not subject to self-employment tax.
C) a member of an LLC is not the same as a limited partner interms of self-employment.
D) a member of an LLC may elect to be treated the same as alimited partner in terms of self-employment income.

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A Self employment tax is basically a tax chargeable on the net earnings of an individual from self employment in a year Any distributive income from a firm to its partner shall come within the ambit of self employment income and hence See Answer

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which of the following statements is correct according to theTax Court?A) a general partner is not subject to self-employment tax.B) a member of an LLC is not subject to self-employment tax.C) a member of an LLC is not the same as a limited partner interms of self-employment.D) a member of an LLC may elect to be treated the same as alimited partner in terms of self-employment income.