Limited Partners and Self-Employment Tax: What You Need to Know

For years, small business owners and real estate investors across the greater Boston area have viewed the title of “limited partner” as a reliable shield against self-employment tax. However, navigating this area of tax planning has recently become much more complicated.

Tax professionals reviewing limited partnership documents

Recent rulings from the Tax Court and the Fifth Circuit Court of Appeals have introduced conflicting perspectives. These courts have taken markedly different approaches when determining exactly when a limited partner’s distributive share of a business’s income should be subject to self-employment tax.

One Accounting Tax® Since 2017
Call/Text: (617) 829-0928 or email service@oneaccountingtax.com to schedule an in-person consultation or video call with our Tax Advisors (IRS Enrolled Agent, EA) today. Serving Braintree, Quincy, and Greater Boston with full-service accounting—tax preparation, payroll, bookkeeping, and year-round tax planning.
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Navigating Partnership Taxation in Braintree and Quincy

Because the rules surrounding limited partnerships are shifting, working with an experienced IRS Enrolled Agent or tax preparer is essential to ensure your business remains compliant. If you need clarity on how these recent court decisions affect your tax preparation and strategy, schedule a consultation with our local accounting team today.

One Accounting Tax® Since 2017
Call/Text: (617) 829-0928 or email service@oneaccountingtax.com to schedule an in-person consultation or video call with our Tax Advisors (IRS Enrolled Agent, EA) today. Serving Braintree, Quincy, and Greater Boston with full-service accounting—tax preparation, payroll, bookkeeping, and year-round tax planning.
Contact Our Local Tax Advisors Today!
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