Discussion:SE Tax - Income and Loss
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Discussion Forum Index --> Advanced Tax Questions --> SE Tax - Income and Loss
Discussion Forum Index --> Tax Questions --> SE Tax - Income and Loss
| 4 December 2007 | |
| Ok, I'm new to this forum and have been browsing around for a couple weeks. Very helpful! I have a question I came across regarding SE Tax (I think I already know the answer but need confirmation of my logic).
Individual is an owner of a sole proprietorship with net income of $40,000. Same individual is also a partner in a partnership that shows a loss of $70,000. Individual does not have sufficient basis to deduct partnership loss, however, can the $70,000 loss be netted against the $40,000 in income for purposes of computing the Self Employment Tax? | |
| 4 December 2007 | |
| Passive for the year in question, yes. Individual was active in the business at one point, but not currently. Losses for last 3 years have totaled $170,000 and she has not put any money in the LLC. | |
Michaelstar (talk|edits) said: | 4 December 2007 |
| Passive losses can not offset SE income for purposes of the SE tax. | |
| 4 December 2007 | |
| How about for the years where the individual did materially participate in the business? | |
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