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Retirement tax questions
Thank you for the response, I appreciate it. My federal taxable income is greater than $0 even with the profit sharing contribution taken into account. I was under the impression that a profit sharing contribution was treated as a dollar for dollar expense just like any other business expense, regardless of the entity type (i.e. Sole proprietor, LLC). Does the fact that I am a sole proprietor have any bearing on my ability to claim a deduction for a profit sharing contribution? I realize self employment tax is calculated based upon net income, but profit sharing contributions are certainly tax deductible if you are an LLC or any other type of business organization. @dmertz
‎January 23, 2021
7:41 AM