If I add $15920 of partnership and S-Corp rental income should my tax increase by $7360, 45%?

[jgmusgrove]

There are 4 K-1 forms, 2 with a loss and 2 with a gain. Entering each form causes the tax calculation to change by 44-46% of the reported profit or loss. Is this right?

[SweetieJean · Accepted solution]

That depends upon your marginal tax bracket, and whether the income is also subject to approx 15% Self Employment taxes. Any increase in income can also lower deductions/credits.

[jgmusgrove]

My taxable income went from $550,000 to $565,000. Does that put me in the highest bracket?

[SweetieJean]

That's the 39.6% Federal bracket for 2017, plus the 0.9% Medicare surtax, plus the 3.8% Net Investment Income Tax.

[jgmusgrove]

Although it is my 2016 tax I am calculating I guess the numbers are the same.

[SweetieJean]

<a rel="nofollow" target="_blank" href="http://fairmark.com/general-taxation/reference-room/2016-tax-rate-schedules/">http://fairmark.com/ge...>

[SweetieJean]

<a rel="nofollow" target="_blank" href="https://www.irs.gov/newsroom/net-investment-income-tax-faqs">https://www.irs.gov/newsroom/net-invest...>
<a rel="nofollow" target="_blank" href="https://www.irs.gov/newsroom/what-you-should-know-about-the-additional-medicare-tax">https://www.irs...>

[jgmusgrove]

Thank you very much for your answers and guidance.