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Posted by nick.saldhana on October 13, 2007, 11:06 pm
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IRS Federal taxes
I am a Self employed person. I have a SEP IRA.
Normally I state the amount of the SEP IRA amount
contributed for the year on the first page of form 1040. (
so it is a deduction just like my self emp health ins
payments ).
Somebody just told me that I can deduct the amount of my SEP
IRA contributions in my Schedule C too since it is a
business expense. Is this true ?
Pls let me know.
Thanks,
Nick
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
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Posted by Rich Carreiro on October 14, 2007, 10:11 pm
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nick.saldhana@gmail.com writes:
> Normally I state the amount of the SEP IRA amount
> contributed for the year on the first page of form 1040. (
> so it is a deduction just like my self emp health ins
> payments ).
That's how it should be done, yes.
> Somebody just told me that I can deduct the amount of my SEP
> IRA contributions in my Schedule C too since it is a
> business expense. Is this true ?
Absolutely not!
However, if you have employees and make SEP contributions
for *them*, then *those* contributions are deducted on your
Sched C. But you never deduct your *own* contribution on
the Sched C.
--
Rich Carreiro rlc-news@rlcarr.com
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>
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Posted by Harlan Lunsford on October 14, 2007, 10:11 pm
Please log in for more thread options nick.saldhana@gmail.com wrote:
> IRS Federal taxes
>
> I am a Self employed person. I have a SEP IRA.
>
> Normally I state the amount of the SEP IRA amount
> contributed for the year on the first page of form 1040. (
> so it is a deduction just like my self emp health ins
> payments ).
>
> Somebody just told me that I can deduct the amount of my SEP
> IRA contributions in my Schedule C too since it is a
> business expense. Is this true ?
I sure hope that somebody isn't a tax professional! You can
tell by this, then, that the answer is "no".
ChEAr$,
Harlan Lunsford, EA n LA
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>
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Posted by Paul Thomas, CPA on October 14, 2007, 10:11 pm
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> I am a Self employed person. I have a SEP IRA.
>
> Normally I state the amount of the SEP IRA amount
> contributed for the year on the first page of form 1040. (
> so it is a deduction just like my self emp health ins
> payments ).
>
> Somebody just told me that I can deduct the amount of my SEP
> IRA contributions in my Schedule C too since it is a
> business expense. Is this true ?
Nope. You were told wrong information.
--
Paul A. Thomas, CPA
Athens, Georgia
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>
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Posted by Herb Smith on October 14, 2007, 10:11 pm
Please log in for more thread options nick.saldh...@gmail.com wrote:
> IRS Federal taxes
>
> I am a Self employed person. I have a SEP IRA.
>
> Normally I state the amount of the SEP IRA amount
> contributed for the year on the first page of form 1040. (
> so it is a deduction just like my self emp health ins
> payments ).
>
> Somebody just told me that I can deduct the amount of my SEP
> IRA contributions in my Schedule C too since it is a
> business expense. Is this true ?
No, that is not true. The following is from Pub 560:
Deduct the contributions you make for your common-law
employees on your tax return. For example, sole proprietors
deduct them on Schedule C (Form 1040), Profit or Loss From
Business, or Schedule F (Form 1040), Profit or Loss From
Farming, partnerships deduct them on Form 1065, U.S. Return
of Partnership Income, and corporations deduct them on Form
1120, U.S. Corporation Income Tax Return, Form 1120-A, U.S.
Corporation Short-Form Income Tax Return, or Form 1120S,
U.S. Income Tax Return for an S Corporation.
Sole proprietors and partners deduct contributions for
themselves on line 28 of Form 1040, U.S. Individual Income
Tax Return. (If you are a partner, contributions for
yourself are shown on the Schedule K-1 (Form 1065),
Partner's Share of Income, Deductions, Credits, etc., you
get from the partnership.)
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>
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