|
Posted by DORFMONT@aol.com (Linda Dorfmo on March 26, 2007, 11:35 am
Please log in for more thread options
private...@gmail.com wrote:
> My wife and I (filing jointly) started an LLC (50-50
> members) in 2005. That year, the LLC had a loss of $7000.
> In the same year, my wife had earned $5000 doing some
> consulting work.
>
> I am now reviewing the 2005 return that our (ex-) accountant
> did, and I realized that in calculating the Self-Employment
> tax, he had calculated as the income the $5000 consulting
> income minus half of the loss from the LLC ($3500), giving
> an income basis of $1500. In other words, he had ignored my
> share of the LLC loss eventhough my wife and I filed
> jointly.
>
> Is this right? Should we have been entitled to deduct the
> full amount of LLC loss which would give us 0 income basis
> for the purpose of the self-employment tax calculation?
Because you and your wife are 2 separate people with your
own individual Social Security accounts, wardrobes, favorite
foods, etc., you get 2 separate Schedule SEs, one for each
of you. Self employment tax is figured for each self
separately and then added together on the joint tax return.
Your ex-accountant did it right. He just didn't explain it
to you, or did you ask him?
Linda Dorfmont E.A., CFP, CSA
<< ======================================================= >>
<< 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 (2006) - All rights reserved. >>
<< ======================================================= >>
| 
Yahoo! 
Google 
Windows Live 
del.icio.us 
digg 
Netscape 
XML Sitemap