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Self-employment tax on rental income
I have an LLC which files a 1065 and I receive a K-1 that shows my rental income. I am actively involved in the business in that I choose tenants and hire repair professionals. Turbo Tax says that I must pay self-employment taxes, but elsewhere I have read that rental income is passive activity that is not subject to self-employment tax unless I am a real estate professional or provide some service to the tenants. Any guidance?
‎April 10, 2021
9:33 AM