Section 736(a) retirement payments to a retired partner for past services rendered to the partnership :...

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Section 736(a) retirement payments to a retired partner for past services rendered to the partnership :...

Section 736(a) retirement payments to a retired partner for past services rendered to the partnership :

a. Are always subject to self-employment tax at the recipient partner level

b. Are never subject to self-employment tax at the recipient partner level

c. Are always federal-income -tax-free to the recipient partner

d. Can be structured to be exempt from self-employment tax with careful planning

business accounting

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Answer 1

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The answer is: Can be structured to be exempt from self-employment tax with careful planning if it is treated as ordinary income.

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