Self-Employed Schedule C income loss & contributions

[Guest ewhitmore]

A client sent us a Schedule C with a net loss. The gross receipt was positive, but there wre a lot of expenses. However, he contributed $26,000, of which $15,000 was 401(k). Are deferrals allowed on gross income, or should we look only at the net profit/loss?

Thanks

[Mike Preston]

Net, not gross. Big oops, I'm afraid.