Alan Is a General Partner in ADK Partnership

Alan is a general partner in ADK Partnership. His partnership Schedule K-1 reports $50,000 ordinary business income, $22,000 guaranteed payment, $5,000 long-term capital gain, and $400 dividend income. Which of these items are subject to self-employment tax?

A) $50,000 ordinary income
B) $50,000 ordinary business income and $22,000 guaranteed payment
C) $50,000 ordinary business income, $22,000 guaranteed payment, and $5,000 long-term capital gain
D) All income reported on a general partner's Schedule K-1 are subject to self-employment tax

Correct Answer:

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