Donald is a general partner in a partnership; his share of ordinary income was reported in box 14 of Schedule K-1. Which of the following statements is TRUE?
Donald is considered an employee.
The amount of income reported in this box will be taxed at the rate that applies to long-term capital gains.
His ordinary income is not subject to self-employment tax.
His ordinary income is subject to self-employment tax.
1 answer
His ordinary income is subject to self-employment tax.
1 answer