Phil is a 30 partner in P G Partnership Phil does not perform any work for P G and is a passive investor Phil's marginal ordinary tax rate is 37 percent Which of the following statements is true regarding Phil's tax treatment of business income allocated to him from P G a) Phil's business income allocation is not subject to self employment tax b) Phil's business income allocation is not subject to the net investment income tax c) Phil's business income allocation is subject to the additional Medicare tax d) Phil's business income allocation is taxed at a maximum 23 8 percent tax rate

Question

Phil is a 30  partner in P G Partnership  Phil does not perform any work for P G and is a passive investor  Phil's marginal ordinary tax rate is 37 percent  Which of the following statements is true regarding Phil's tax treatment of business income allocated to him from P G  a) Phil's business income allocation is not subject to self employment tax  b) Phil's business income allocation is not subject to the net investment income tax  c) Phil's business income allocation is subject to the additional Medicare tax  d) Phil's business income allocation is taxed at a maximum 23 8 percent tax rate

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Phil is a 30% partner in P&G Partnership. Phil does not perform any work for P&G and is a passive investor. Phil's marginal ordinary tax

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