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Strategies & Market Trends : IRS, Tax related strategies--Traders -- Ignore unavailable to you. Want to Upgrade?

To: mod who wrote (193)	2/28/1998 12:49:00 AM
From: Colin Cody	Respond to of 1383

Dennis, you asked: " are you then saying that you can use losses on a trading schedule C to avoid self-employment tax on earned income on a schedule C for a different business? ABSOLUTELY, that is the law. You MUST do so. . I can't find any reference to aggregation of Schedule C's for SEP-IRA purposes in the IRS publications. Where would I find that requirement? . I'm going to back off on my previous statement. I see some possibilities now. One is to pay a WAGE rather than a consulting fee. Another is to have the SPOUSAL Sch C a passive "active" trader, allowing the active spouse to run the business... And I see that even maybe you may NOT need to aggregate (for HR 10 plans) . I just never have seen it done, but maybe you CAN have one HR 10 per Sch C... I'm just not sure now. But I have thought of enough items (above) to take back my caution I expressed earlier. Sorry for the confusion. . And how would that work for employer contributions to a SEP-IRA, where the employee has another schedule C with a loss? The employer can still make contributions, and can deduct them as far as I can tell, but that would seem to violate your aggregation rule. . I think you are asking what I just thought of above. I see your point, and I agree - no problem taking the deduction for a bona-fide employee / spouse. . Colin