Gina Is a Single Taxpayer and an Active Partner in the GMA

question 88

True/False

Gina is a single taxpayer and an active partner in the GMA LLC. Gina's Schedule K-1 reflects a $20,000 ordinary income share, $2,000 of interest income, and a $10,000 guaranteed payment for services. Gina's self-employment income from other sources and modified adjusted gross income is about $300,000. With respect to the income from the LLC, Gina is subject to the 0.9% additional Medicare tax on $30,000 and the 3.8% net investment income tax of
$2,000.

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Definitions:

Securities

Securities that signify ownership in a company listed on the stock market, a debt owed by a corporation or government entity (bonds), or entitlements to ownership through options.

Exchange Rate

The price of one country's currency expressed in another country's currency; it determines how much one currency is worth in terms of another.

Doing Business Abroad

The activity of engaging in commerce or investment in foreign countries, often involving different regulations and environments.

Multinational Corporations (MNCs)

Companies that operate in multiple countries beyond their home country.