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sdsaavedra
Level 2

2 businesses

If I made $8,000 from one self-employed business & lost $9,000 in another distinct self-employed business. Can I contribute to an IRA for the profitable business? Thank you.

1 Best answer

Accepted Solutions
macuser_22
Level 15

2 businesses

That does  not sound like you had any net taxable compensation.

 

You can only contribute to an IRA if you have net taxable self-employed income as reported on the 1040 schedule 1 line 3 minus schedule 1 lines 14 plus 15 (or you also have w-2 box 1 income).

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**

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2 Replies
macuser_22
Level 15

2 businesses

That does  not sound like you had any net taxable compensation.

 

You can only contribute to an IRA if you have net taxable self-employed income as reported on the 1040 schedule 1 line 3 minus schedule 1 lines 14 plus 15 (or you also have w-2 box 1 income).

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
sdsaavedra
Level 2

2 businesses

Thank you!    And thank you for making it so clear 🙂

Shawn

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