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Which of the following isems may be subject to the sef-employmant tax?

a. A partner's distribution share of partheriship income
b. Capial gain
c. Interest income
d. Dovidend income
e. None of these choices are correct

User Suluke
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1 Answer

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Final answer:

The self-employment tax may be applicable to a partner's distribution share of partnership income. Therefore, the correct answer is a. A partner's distribution share of partnership income.

Step-by-step explanation:

The subject of the question is self-employment tax in a business context. Self-employment tax is a tax that individuals must pay if they are self-employed and earn income from self-employment activities. It is also known as the SE tax. The tax is applied to net earnings from self-employment, which can include income from a partnership, capital gains, or interest income.

Out of the choices given, a partner's distribution share of partnership income may be subject to the self-employment tax. This is because partners in a partnership are considered self-employed individuals.

Capital gain, interest income, and dividend income are not subject to the self-employment tax. Capital gains and interest income are typically subject to other types of taxes, such as capital gains tax or income tax. Dividend income is also taxed differently.

User Ecth
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