Problem: First year partner, received a $2,000 monthly guaranteed payment. Share of ordinary business income was $55,000. If his combined income and SE tax rate on his earned income is 30 percent, compute his after-tax cash flow from partnership assuming the following.
1) In addition to his guaranteed payments, Mr. Fallon received a $10,000 cash distribution from Jenkle.
2) In addition to his guaranteed payments, he received a $50,000 cash distribution from Jenkle.