exclusion from coverage of certain limited partnership income

exclusion from coverage of certain limited partnership income Sec. 313. (a) Section 211(a) of the Social Security Act is amended— (1) by striking out “and” at the end of paragraph (9); (2) by striking out the period at the end of paragraph (10) and inserting in lieu thereof “; and”; and (3) by inserting after paragraph (10) the following new paragraph: “(11) There shall be excluded the distributive share of any item of income or loss of a limited partner, as such, other than guaranteed payments described in section 707(c) of the Internal Revenue Code of 1954 to that partner for services actually rendered to or on behalf of the partnership to the extent that those payments are established to be in the nature of remuneration for those services.”. 91 STAT. 1536 (b) Section 1402(a) of the Internal Revenue Code of 1954 (relating to definition of net earnings from self-employment) is amended— (1) by striking out “and” at the end of paragraph (10); (2) by striking out the period at the end of paragraph (11) and inserting in lieu thereof “; and”; and (3) by inserting after paragraph (11) the following new paragraph: “(12) there shall be excluded the distributive share of any item of income or loss of a limited partner, as such, other than guaranteed payments described in section 707(c) to that partner for services actually rendered to or on behalf of the partnership to the extent that those payments are established to be in the nature of remuneration for those services.”. (c) The amendments made by this section shall apply with respect to taxable years beginning after December 31, 1977.