For self-employment tax purposes, how is a decedent’s distributive share of a partnership’s income or loss treated?
Understand the Problem
The question asks about the treatment of a deceased partner's share of partnership income or loss for self-employment tax purposes. We need to determine whether it's included up to the date of death, excluded entirely, included through the end of the month of death, or included through the end of the partnership's tax year.
Answer
It is treated the same as prior years, based on the decedent's partner status and income character.
For self-employment tax purposes, a decedent's distributive share of a partnership's income or loss for the year of death is treated the same as it would be for years prior to death. The determination is based on the decedent's status as a partner (general or limited) and the character of the income.
Answer for screen readers
For self-employment tax purposes, a decedent's distributive share of a partnership's income or loss for the year of death is treated the same as it would be for years prior to death. The determination is based on the decedent's status as a partner (general or limited) and the character of the income.
More Information
The IRS Publication 559 provides guidance on how to handle various tax situations that arise after someone dies.
Tips
Be sure to consult a tax professional or refer to IRS publications for detailed guidance on self-employment tax and partnership income.
Sources
- Publication 559 (2023), Survivors, Executors, and Administrators - IRS - irs.gov
- A decedent's self-employment income attributable to his or her share of partnership income for the year of death will be determined on the same basis as for years prior to death, i.e., based on the decedent's status as a partner (general or limited, etc.) and the character of the income. - thetaxadviser.com
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