This Year, Reggie's Distributive Share from Almonte Partnership Includes $8,000

question 57

Essay

This year, Reggie's distributive share from Almonte Partnership includes $8,000 of interest income, $4,000 of dividend income, and $60,000 ordinary business income.
A. Assume that Reggie materially participates in the partnership. How much of his distributive share from Almonte Partnership is potentially subject to the Medicare contribution tax?
B. Assume that Reggie does not materially participate in the partnership. How much of his distributive share from Almonte Partnership is potentially subject to the Medicare contribution tax?

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Definitions:

Anxiety

A feeling of worry, nervousness, or unease typically about an imminent event or something with an uncertain outcome.

Cognitive Therapy

A type of psychotherapy that treats mental health conditions by addressing negative patterns of thought.

Decatastrophize

A cognitive-behavioral technique aimed at reducing anxiety by altering catastrophic thinking into more balanced and realistic assessments of situations.

Cognitive Therapy

A form of psychotherapy that emphasizes the importance of thought patterns in the development and maintenance of psychological disorders; it aims to change negative thought patterns to improve emotional state and behavior.