Can I include personal oil royalty income with my business income for determining how much I can contribute to my SEP IRA.

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NO! Oil  royalties from mineral extraction of the rights you own,are considered passive sources of income.

Compensation, or earned income, is required to make a traditional and/or Roth IRA regular contribution.

Any amount “derived from or received as earnings or profits from property” heads the list of income not recognized as compensation for IRA purposes. This includes interest, dividends on stock, rental income, royalties, or gains received when property is sold (long- or short-term capital gains).