Thanks. My husband and I both meet the FICA maximums, so we only end up paying the 1.45% medicare (and the 0.9% extra tax) portion. I assume if we do have income subject to SE tax as a result of a profit on a future home, the same limits would apply? Really just a hypothetical at this point. But just curious.
If I do the books for the house, I'm definitely materially participating. I accept no pay for this, though. It's night/weekend type thing. My husband really doesn't do much day to day with the spec house. Our business partner is the one who pounds the nails. I assumed all three of us would be active, but perhaps my husband is passive?
And yes, we filed a partnership return in 2018 and 2019, but we had nothing to show and it only included partnership expenses, like the secretary of state biennial report and contractor registration fees, so we each showed a slight loss on the partnership 1065 return.
