Multiple schedule c's

Hi

I know this was discussed before but cannot find it.

A sole-prop has multiple business's and files multiple schedule c's. Let's call them X, Y and Z. No employees.

Pension plan is sponsored by X only.

X net amount is 200k - only sponsor of the plan.

Y net amount is 50k

Z net amount is negative 75k.

If I recall correctly, net c for pension is the sum of all 3 i.e. 175k and this is the amount se tax needs to be calculated.

Do I recall correctly?

Thank you

See 1.401-10(b)(2) below.  You will only use company X's net self employment income unless companies Y & Z have adopted the plan.

§ 1.401-10 Definitions relating to plans covering self-employed individuals.

(b) Treatment of a self-employed individual as an employee.

(1) For purposes of section 401, a self-employed individual who receives earned income from an employer during a taxable year of such employer beginning after December 31, 1962, shall be considered an employee of such employer for such taxable year. Moreover, such an individual will be considered an employee for a taxable year if he would otherwise be treated as an employee but for the fact that the employer did not have net profits for that taxable year. Accordingly, the employer may cover such an individual under a qualified plan during years of the plan beginning with or within a taxable year of the employer beginning after December 31, 1962.

(2) If a self-employed individual is engaged in more than one trade or business, each such trade or business shall be considered a separate employer for purposes of applying the provisions of sections 401 through 404 to such individual. Thus, if a qualified plan is established for one trade or business but not the others, the individual will be considered an employee only if he received earned income with respect to such trade or business and only the amount of such earned income derived from that trade or business shall be taken into account for purposes of the qualified plan.

Notwithstanding the fact that you can use compensation only earned by those who have adopted the plan, you must use all three for section 415 purposes.