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My understanding is that I am not self-employed (or I wouldn't receive a K1, right?), therefore won't pay SS or Medicare, but must pay quarterly estimates on the passive (investment) income I receive through the partnership.

As to trader tax questions, the main two are (1) do you qualify for trader tax status, and (2) do you use MTM accounting with regard to booking profits and losses. I think question 2 is handled at the partnership level and would only apply to me on my personal accounts, while I'm still. Question one would apply to only to my deductible expenses, as losses would be deducted on the partnership level as well. I probably need to speak with a CPA in more detail on these two questions.

In any case, my question was really with regard to SS and Medicare obligations, and it sounds like you guys confirm that passive income does not generate any SS or medicare obligations.

Greg
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