Jump to content

Contributions from multiple entities


dmb

Recommended Posts

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

  • 2 weeks later...

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

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
×
×
  • Create New...