SMB Posted March 31, 2009 Posted March 31, 2009 A sole proprietor (SP) operates two (2) separate and distinct businesses. No employees in either enterprise (never has been - never will be). For 2008, SP has a separate Schedule C for each "business" - one with a "Net Profit" the other with a "Net Loss". SP has an SEP. Must the 2008 "Net Profit" and "Net Loss" be further "netted" for SEP contribution purposes, or can a contribution be made only by the business that had a "Net Profit"? Thanks!
J Simmons Posted April 3, 2009 Posted April 3, 2009 I think you have to further net for SEP purposes. Otherwise, a SP could artificially segregate its gross revenues into one schedule C and its expenses all into another Schedule C in order to artificially inflate SE income for SEP purposes. John Simmons johnsimmonslaw@gmail.com Note to Readers: For you, I'm a stranger posting on a bulletin board. Posts here should not be given the same weight as personalized advice from a professional who knows or can learn all the facts of your situation.
Kevin C Posted April 3, 2009 Posted April 3, 2009 Did they count income from both businesses in prior years when both had a net profit?
J Simmons Posted April 4, 2009 Posted April 4, 2009 See Derrin Watson's answer to a similar question here John Simmons johnsimmonslaw@gmail.com Note to Readers: For you, I'm a stranger posting on a bulletin board. Posts here should not be given the same weight as personalized advice from a professional who knows or can learn all the facts of your situation.
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