PhoebeRoberts
Level 11
12-07-2019
02:10 AM
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It's not that it's reported in Box 7. It's that working interests are by definition subject to SE tax, exactly as a general partnership interest would be. (And a working interest is basically equivalent to a GP interest in the well.)
There's a really old court case where a little old lady who inherited her interest was found to be not subject to SE tax. But if you're going to take the position that it's not a ToB for SE tax, it's hard to also be arguing that it's a ToB for QBI.
There's a really old court case where a little old lady who inherited her interest was found to be not subject to SE tax. But if you're going to take the position that it's not a ToB for SE tax, it's hard to also be arguing that it's a ToB for QBI.