Self-employment tax and the limited partner
Section 1401 and 1402 provide that individuals are subject to self-employment tax under the Self-Employment Contribution Act (SECA) on their net earnings from self-employment derived from conducting a trade or business directly or indirectly through a partnership. The self-employment tax rate is 15.3%, of which 12.4% is for Social Security and 2.9% is subject to Medicare. There is an...