Michael Wilson wrote:

- quote -

Nope, not unless you are something less than a "silent"
partner and actually do some work for the company.

Cheer$,
Harlan Lunsford, EA n LA

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I am a silent partner in an LLC. I funded the business to
the tune of $60,000. The company showed losses for 2000
through 2002 totaling $36,700. My accountant showed them as
passive losses. For 2003, there will be a $12,000 gain with
no disbursement of cash to me. The LLC agreement says I get
all gains and losses until I have actual recovery of my
capital. My accountant says that on this year's gain I will
have to pay self-employment taxes. Is this right?

Michael

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