30 November 2023
Article
Tax Court Rules that “Active” Limited Partners are Subject to Self-Employment Tax
On November 28, 2023, the Tax Court ruled in Soroban Capital Partners, L.P. v. Commissioner that limited partners in a New York hedge fund could be subject to self-employment tax on their distributive share of partnership net income if they are actively involved, notwithstanding the Section 1402(a)(13) “limited partner” exception.
