@TomK2023 Thank you. I am aware how the limitation works. Let me be more specific. I have my own business and a SEP related to that business. Separately, I have a UPE from a limited partnership that I do not control. The only item I have from that partnership is the UPE. In computing net business profits for determining the SEP contribution limit, does the unrelated UPE reduce the profits from the business that has the SEP?
Based on the below, taken from IRS publication 560's definition of net earnings from self-employment, I think the answer is it should not, but turbotax's software seems to disagree.
"Net earnings include a partner's distributive share of partnership income or loss (other than separately stated items, such as capital gains and losses). They don’t include income passed through to shareholders of S corporations. Guaranteed payments to limited partners are net earnings from self-employment if they are paid for services to or for the partnership. Distributions of other income or loss to limited partners aren't net earnings from self-employment."
Thanks for your thoughts on this.
