SMB
Mar 31 2009, 06:22 PM
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
Apr 2 2009, 08:56 PM
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.
Kevin C
Apr 3 2009, 08:38 AM
Did they count income from both businesses in prior years when both had a net profit?
J Simmons
Apr 3 2009, 07:45 PM
See Derrin Watson's answer to a similar question
here
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