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I basically have the same question as this person: But I'm…

I basically have the same...
I basically have the same question as this person: https://www.justanswer.com/tax/0201h-tennessee-llc-excise-tax.htmlBut I'm unclear on what exactly it all means, especially this part
"The full amount paid or distributable to partners or members for personal services may be deducted, provided it does not create or increase any net loss."I guess my question is if all my business income is subject to self employment taxes, does that mean I can deduct the full amount on my Franchise and Excise taxes and not pay anything?
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Answered in 36 minutes by:
4/14/2018
Marcia Mitrano
Category: Tax
Satisfied Customers: 62
Experience: Marcia M Mitrano, CPA at Marcia M Mitrano, CPA
Verified

Hello,

Yes, you are correct. The amount for which you pay self-employment tax are not subject to the 6.5% excise tax.

Thank you,

Marcia M Mitrano

Marcia Mitrano
Category: Tax
Satisfied Customers: 62
Experience: Marcia M Mitrano, CPA at Marcia M Mitrano, CPA
Verified
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