Craig Mello is a general partner in the Bottle Down Partnership, which manufactu
ID: 2486444 • Letter: C
Question
Craig Mello is a general partner in the Bottle Down Partnership, which manufactures glass bottles. During the current year, Mello reported ordinary income from his partnership interest of dollar 80,000. For additional income, Mello wrote a book. For this, he received royalties in the current year of dollar 15,000. Also during the current year, dollar 10,000 worth of improvements were left by a lessee on rental property held by Mello. What amount should Mello include as self-employment income on his current-year return (before any deduction for self-employment taxes)? dollar 25,000 dollar 90,000 dollar 95,000 dollar 105,000Explanation / Answer
The answer is Option C.
Mello should include $80000 (Income from Partnership Interest) and $15000 (Royalty from book) as his self employment Income on his current year return.