PolicyEngine / PolicyEngine/policyengine-taxsim

US joint -294Kpsemp 7Kssemp 159intrec -4403Kscorp

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Python
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Description

See http://taxsim.nber.org/out2psl/1003

This is why we need help with pass-through income from a tax specialist.

The psemp and scorp losses are limited as I understand it depending on the material participation and at-risk situation. I think we should consider scorp to have no material participation (so it can have no FICA also) and all capital at risk. I don't think this is the PE treatment, though I can't figure out exactly what PE is doing. Then psemp an sssemp are subject to FICA and have material participation.

Can I ask you to fill out the 1040, 461 and other income forms and send them to me? Then I will know exactly what is happening. If you just describe it to me, I probably won't understand and it will take a lot of back and forth to settle on a common treatment.

Thanks

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First steps

  1. Read the whole issue, then the project's contributing guide.
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  3. Fork the repository and make your change on a branch.
  4. Open a pull request that references the issue number.

Research direction

Start with the TAXSIM output linked at http://taxsim.nber.org/out2psl/1003 and trace how the pass-through income, psemp, sssemp, and scorp losses are treated. Review the requested 1040 and 461 results and clarify the material-participation, at-risk, and FICA assumptions. Done means the emulator's output has an agreed treatment for these cases.

Written by the indexing model from the issue text.

Assessment

Tech stack
python
Domain
fintech-quant
Issue type
Bug
Difficulty
5/5
Estimated time
Over a week
Activity status
Quiet
Clarity
Needs clarification
Newbie friendliness
20/100

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