Sole proprietor with multiple Schedule C's

[Guest Nineteen]

I have a DB plan where the sole proprietor has more than one business and files more than one Schedule C. These are all one-man businesses--no employees.

He adopted a DB plan for one of the businesses a few years ago (let's call the business Business A). None of the other businesses has since adopted the plan. For the DB calculations, only Business A's income has been used in determining the benefits and contributions. For 2003, the contribution is about $78,000.

I received a copy of the 2003 Form 1040, and line 12 (re total income from all Schedule C's) shows a small loss. Although my sole proprietor has positive income from Business A (as shown on line 31 of that Schedule C), the other businesses had losses and lead to a negative amount on the 1040.

My question is:

a) Can he deduct the DB contribution for 2003 (at least up to his SE income from Business A's Schedule C), or

b) Is he unable to deduct any of the contribution because of the overall loss showing on line 12 of the 1040 (showing all of the Schedules C for 2003)?