Profit Sharing Contributions for self employed

[Guest chris4013]

I've reviewed some proposals where we instruct Partners to take their contributions as a ps contribution rather than 401k to avoid SE tax. I can't see where partners contribution is excluded from the SE tax calculation. Can someone confirm that the partners share of the ps contribution does not avoid se taxation? How about an LLC, whose income is reported on a K-1? How about a sole prop? I believe their share of the contribution does not reduce their schedule C income, reported on page 1 of the 1040, thereby incurring S/E tax on their share of the PS contribution amount.

[Blinky the 3-eyed Fish]

I saw your related post under the small business forum. Your understanding is the same as mine, that the PS contribution for the partner/sole proprietor does not reduce the SE tax. Though I have seen accountants that do take sole proprietor plan contribution deductions on the Sch C rather than the 1040, I believe them to be incorrect in doing so.

[R. Butler]

I agree with Blinky, the instructions for both Sch. C & Form 1065 are fairly clear that deductions for self employed contributions are taken on the inidividual 1040's.