What’s Up with Self-Employment Tax, NIIT, and the Additional §1401 Tax?
There has been a greater focus on self-employment tax in recent years than in past years. There is ongoing litigation on what limited partner means under Section 1402(a)(13), added in 1977. This special rule provides that net earnings from self-employment do not include the distributive share of any item of income or loss of a limited partner, except for guaranteed payments for services rendered to or on behalf of the partnership.
