Self-Employed Health Insurance - Rental

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  • Bill Tubbs
    Senior Member
    • Jan 2006
    • 495

    #1

    Self-Employed Health Insurance - Rental

    New client, upon advise of prior preparer, had his health insurance issued under his business name. That meets one criteria for deducting the health insurance as Self-Employed Health Insurance (Form 1040, Line 29). But does the definition of Self-Employed here include Sch E? (They have 20,000+ in net income from storage units they rent out on their personal Sch E.)

    Bill
  • taxea
    Senior Member
    • Nov 2005
    • 4292

    #2
    You said "under his business name". Has he elected to do his rental through a Sch C?
    Is he in the business of renting properties? If they are Sch E only then this won't fly. taxea
    Believe nothing you have not personally researched and verified.

    Comment

    • WhiteOleander
      Senior Member
      • Jun 2005
      • 1370

      #3
      Income must be subject to SE tax to be able to take the self employeed health ins deduction.
      You have the right to remain silent. Anything you say will be misquoted, then used against you.

      Comment

      • Bill Tubbs
        Senior Member
        • Jan 2006
        • 495

        #4
        Sch E

        Nope, this is Sch E, not a Sch C. He does have a name that he's using as his "rental business", and the health insurance has that business name.

        Just wanted to make sure I wasn't missing something...

        Thanks,
        Bill

        Comment

        • Kram BergGold
          Senior Member
          • Jun 2006
          • 2112

          #5
          Read the rules

          You have to get the rentals onto Scheudle C to use SE health. So read the rules as to when a rental is a business. Like a B & B is a business not a rental. S tore renting video CD's is a business not a rental. Maybe you can something that qualifies renting storage spaces as a business not a rental.

          Comment

          • Bill Tubbs
            Senior Member
            • Jan 2006
            • 495

            #6
            Storage spaces

            Rental of storage spaces seems to me to be a clear-cut Sch E. There are no other personal services that are provided.

            Thanks all.

            Comment

            • ChEAr$
              Senior Member
              • Dec 2005
              • 3872

              #7
              But it's not

              Originally posted by Bill Tubbs
              Rental of storage spaces seems to me to be a clear-cut Sch E. There are no other personal services that are provided.

              Thanks all.
              rental of storage space IS schedule c activity.

              schedule e is for rental real estate. and royalties on page 1.
              ChEAr$,
              Harlan Lunsford, EA n LA

              Comment

              • Gene V
                Senior Member
                • Jun 2005
                • 1057

                #8
                self-storage rental

                You might be interested in looking this case up.--Its about a lawyer wanting to
                deduct his self-storage rental loss against his schedule C income.



                ROGER G. HOPPER AND HELEN H. HOPPER, PETITIONERS v. COMMISSIONER
                OF INTERNAL REVENUE, RESPONDENT

                Docket No. 22123-87. Filed March 27, 1990.


                Income and expenses related to the business of renting self-storage
                units are found to be "rentals [and deductions] from real estate" within
                the meaning of sec. 1402(a)(1), I.R.C. 1954, and sec. 1.1402(a)-4(a) and
                (c), Income Tax Regs., and are therefore excludable from the computation
                of net earnings from self-employment. P cannot offset his share of the net
                loss from the self-storage business against income from his law practice
                in determining net earnings from self-employment which are subject to
                self-employment tax.

                Comment

                • Jesse
                  Senior Member
                  • Aug 2005
                  • 2064

                  #9
                  Primary Forum for posting questions regarding tax issues. Message Board participants can then respond to your questions. You can also respond to questions posted by others. Please use the Contact Us link above for customer support questions.


                  This was an interesting discussion. Take a look at Veritas' post for additional cites.
                  http://www.viagrabelgiquefr.com/

                  Comment

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