dmb Posted August 25, 2005 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.
Gary Lesser Posted September 8, 2005 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.
Recommended Posts
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 accountSign in
Already have an account? Sign in here.
Sign In Now