countrygirl2
Senior Associate
Joined: Dec 7, 2016 15:45:05 GMT -5
Posts: 17,636
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K1
Sept 14, 2018 18:08:04 GMT -5
Post by countrygirl2 on Sept 14, 2018 18:08:04 GMT -5
Hubs and I have our LLC set up 50/50 division of money input and for distributions of profit. Our son is on it but not eligible for profit distribution, we just added him in case or when something happens to us then we intend for that portion to go to him.
Next year we anticipate having profits, when we do and the K1 carries over to our 1040 are the profits considered self employment income that we have to pay 15.3% SS tax on?
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gacpa
Familiar Member
Joined: Nov 19, 2013 16:08:06 GMT -5
Posts: 740 
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Post by gacpa on Sept 15, 2018 15:38:27 GMT -5
Pat, the link above is to an article that explains rental income is not subject to self employment tax. Look at page 2. My mother has lease income from renting out farm land. Her partnership K-1 (Form 1065) each year reports it as rental income and she does not pay self employment tax. |
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countrygirl2
Senior Associate
Joined: Dec 7, 2016 15:45:05 GMT -5
Posts: 17,636
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K1
Sept 15, 2018 16:37:30 GMT -5
Jaguar likes this
Post by countrygirl2 on Sept 15, 2018 16:37:30 GMT -5
Ok, we have K1 income, and still have one little piece of rental schedule C property. But sounds good not to have to pay that too. It's in another state and could not be rolled into our LLC in Indiana.
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