To use this method the taxpayer must be regularly self-employed, defined as having actual net earnings from self-employment of $400 or more in two of the three years preceding the year the nonfarm optional method is used.
Pub 334: Net nonfarm profit generally is the total of the amounts from:
-Line 31, Schedule C (Form 1040)
So if a taxpayer has incurred losses for the past 5 years, the "net earnings from self employment" is less than $400, they are not eligible to use this method, correct?
Pub 334: Net nonfarm profit generally is the total of the amounts from:
-Line 31, Schedule C (Form 1040)
So if a taxpayer has incurred losses for the past 5 years, the "net earnings from self employment" is less than $400, they are not eligible to use this method, correct?
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