Carol M. Kopp edits features on a wide range of subjects for Investopedia, including investing, personal finance, retirement planning, taxes, business management, and career development. Katrina Ávila ...

Many small businesses and investment vehicles are structured with partners. Technically, a business partnership is created when two or more individuals come together for a specific business purpose.

The IRS wants to argue that the more involved a limited partners is in the day-to-day operations of a business, the more likely they should be subject to self-employment tax. What is a limited partner ...

As the name implies, a limited partner in a partnership is a partner, in contrast to a general partner, who has liability for partnership debts only to the extent of the limited partner's investment ...

For a brief discussion of the Limited Partner Exception, relevant caselaw, and an analysis of the decision in Denham, see our publication “Another U.S. IRS Victory in the Self-Employment Tax Arena: ...

In today’s litigious society, safeguarding your wealth has never been more important. For high-net-worth individuals, business owners and anyone with substantial assets, protecting those assets from ...

Last week, the federal Court of Appeals for the Fifth Circuit ruled that the U.S. Tax Court had misinterpreted the Code’s self-employment tax rules as they apply to individuals who hold limited ...

Generally, the IRS imposes taxes on all of a taxpayer's income—whether it's earned as an employee or as a self-employed individual. One significant exception is IRC Section 1402(a)(13), which excludes ...

The Fifth Circuit vacated and remanded a Tax Court decision, holding that the limited partner exception from net earnings from self-employment under Sec. 1402(a)(13) applies to a partner in a limited ...

The Tax Court, consistent with past cases, applied a functional analysis of a limited partnership’s individual partners’ roles and responsibilities to find they could not apply Sec. 1402(a)(13)’s ...