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:

Bile

A digestive fluid produced by the liver and stored in the gallbladder, aiding in the digestion and absorption of fats in the small intestine.

Amylase

One of a group of starch-splitting enzymes that cleave starch, glycogen, and related polysaccharides.

Maltase

An enzyme that breaks down maltose into glucose, playing a crucial role in the digestive process of carbohydrates.

Carbohydrates

Organic compounds, including sugars, starch, and cellulose, which serve as a major energy source in the diet of animals.