If you’ve worked in the tax preparation world for any measure of time, you’ve assuredly run into the following conundrum:
My client is a member in an LLC. Is his/her share of the LLC’s income subject to self-employment income?
At that point, you went one of two directions:
- Opened up your tax research software/hard copy Code/Google machine, or
- Said “screw it, I’ll exclude it,” and went on with your life. (Ed note: this is the option you took).
Authored by Tony Nitti, Withum Partner and writer for Forbes.com.