For the tax year OPQ Partnership reported 42000 net ordinary

For the tax year, OPQ Partnership reported $42,000 net ordinary income, $5,000 interest income, $600 charitable contribution and $18,000 Section 179 deduction. Pat is a general partner who owns 20% interest in OPQ. She received $12,000 guaranteed payment and $0 distributions during the year. What is the amount of Pat\'s self-employment income from OPQ?
a. $4,680
b. $4,800
c. $8,400
d. $16,800

SOLUTION:-net ordinary income=42000

less:section 179 deductions=18000

net income=24000

pat income= 24000*20%=4800

add: guranteed payments=12000

total=16800( self employment income) includes both guranteed payments and distributable share of profits.

For the tax year, OPQ Partnership reported $42,000 net ordinary income, $5,000 interest income, $600 charitable contribution and $18,000 Section 179 deduction.

For the tax year OPQ Partnership reported 42000 net ordinary

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