[Anonymous]

I got this question from Becker R-4, “Under what circumstances must a partner include guaranteed payments in self-employment income?” The solution is Sec 1402 (a). But when I read through that section, guaranteed payment is nowhere to be found in the text, besides telling you the definitions of net earnings from self-employment. I found the guaranteed payments under Sec 707 (c) and I thought that was a more appropriate answer…

Does anyone know how to deal with this type of questions when the key words are not even specifically mentioned in the code? Thanks!

[Anonymous]

I noticed the same thing. I thought it was me…

[Minimorty]

This is included in section 1402(a):

(13) there shall be excluded the distributive share of any item

of income or loss of a limited partner, as such, other than

guaranteed payments described in section 707(c) to that partner

for services actually rendered to or on behalf of the partnership

to the extent that those payments are established to be in the

While section 707(c) actually describes guaranteed payments, only Section 1402(a) describes under what circumstances must a partner include guaranteed payments in self-employment income. Section 1402(a) is a huge section. I guess on the research tabs you really need to make sure you take the time to read the whole section once you are able to narrow it down.

[Author]

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