dmb Posted August 25, 2005 Share Posted August 25, 2005 A client is a partner of a partnership and also has unrelated self employment income reportable on his Schedule C. Can he receive contributions from a SEP established by the partnership and a SEP established by him for his self employment income?? Thanks. Link to comment Share on other sites More sharing options...
Gary Lesser Posted September 8, 2005 Share Posted September 8, 2005 Yes, if he is truly "unrelated" (not Controlled/Affilliated etc). See 415(h) regarding application of the 415 limit if owner is in control (more than 50%) of more than one entity. In calculating the compensation (earned income), the gain from the other entity has to be taken into account (in each case) in determining the 1/2 of the SE tax deduction and the SE tax apportioned between the two entities. Link to comment Share on other sites More sharing options...
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