Thanks for the detailed explanation. The reason you mentioned self-employment tax is because my employer where i get my W2 is also the partnership and since I am a (very small percent) partner it becomes like a self-employment thing?
Also, I wanted to ask a bit more about the 500-hour rule: Do the 500 hours need to be specifically managerial or operational duties within the partnership, or do any work-related hours that contribute and benefit the partnership count?
