Omar (single) is a 50 percent owner in Cougar LLC (taxed as a partnership). Omar works half time for Cougar and receives
Posted: Wed Apr 27, 2022 10:57 am
Omar (single) is a 50 percent owner in Cougar LLC (taxed as a
partnership). Omar works half time for Cougar and receives
guaranteed payment of $50,000. Cougar LLC reported $450,000 of
business income for the year (2020). Before considering his 50
percent business income allocation from Cougar and the
self-employment tax deduction (if any), Omar’s adjusted gross
income is $210,000 (includes $50,000 guaranteed payment from Cougar
and $160,000 salary from a different employer). Answer the
following questions for Omar.
c. What is Omar’s self-employment tax
liability (exclude the guaranteed payment)? (Do not
round intermediate calculations and round your final answer to the
nearest whole dollar.)
Will thumbs up for correct answer! Thanks!
partnership). Omar works half time for Cougar and receives
guaranteed payment of $50,000. Cougar LLC reported $450,000 of
business income for the year (2020). Before considering his 50
percent business income allocation from Cougar and the
self-employment tax deduction (if any), Omar’s adjusted gross
income is $210,000 (includes $50,000 guaranteed payment from Cougar
and $160,000 salary from a different employer). Answer the
following questions for Omar.
c. What is Omar’s self-employment tax
liability (exclude the guaranteed payment)? (Do not
round intermediate calculations and round your final answer to the
nearest whole dollar.)
Will thumbs up for correct answer! Thanks!