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Financial Planning / Tax Strategies


Subject:  Re: Self Employment Income Date:  2/6/2000  1:49 PM
Author:  TheBadger Number:  27467 of 127637

As a general comment; income from one's labors only is considered "earned" income; whereas income derived from an asset, albeit deployed using one's brainpower, is considered "unearned" income. Only "earned" income can be treated as "Self-employment" income.

Further, why would you want to consider your trading gains/losses as well as interest & dividends as "self-employment" income? To do so would subject yourself to self-employment taxes (FICA / Medicare / FUTA / SUTA) and the sum of these taxes is very material and there are insufficient deductions (let's say a pension plan) elsewhere to offset these taxes.


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