All appears to be correct.
An LLC member-manager is NOT the same as a general partner in a partnership, so the analysis of net income is correct.
Can be confusing, but that is how the IRS box is designated on the K-1. This gets to the determination of whether the income / loss is subject to SE Tax for a trade or business.
You are both active based on your facts. You meet one of the tests:
- The individual’s participation in the activity constitutes substantially all of the participation in the activity of all individuals for the tax year, including the participation of individuals who did not own any interest in the activity
*A reminder that posts in a forum such as this do not constitute tax advice.
Also keep in mind the date of replies, as tax law changes.
