Archimage Posted December 2, 2003 Posted December 2, 2003 I have a client that is a single member LLC. For tax purposes he files a schedule C. He also files a schedule F for a farm he owns. His farm income offsets all income earned through the sch C so total income is zero. My question is, can he still take a deduction on the sch C for profit sharing contributions or does the loss from the sch F eliminate this deduction?
Blinky the 3-eyed Fish Posted December 2, 2003 Posted December 2, 2003 FWIW, someone in my firm once researched the use of Sch F income and came to the conclusion is was not available to be used for qualified plan purposes. I would assume the same is true in reverse in that it does not offset Sch C income for qualified plan purposes. Of course this is all heresay and the information may not be worth a turd in the lawn, but there you have it. "What's in the big salad?" "Big lettuce, big carrots, tomatoes like volleyballs."
jevd Posted December 2, 2003 Posted December 2, 2003 Blinky, I'm far from an expert on this subject, but I'm aware of many self-employed farmers using Schedule F income as compensation for qualified plans. Does that individual at your firm still have the research? Any specific justification for the opinion? Any one else have a comment on this subject. CPA's Tax Attorney's in the House??? : Bri 1 JEVD Making the complex understandable.
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