Schedule C: any way to deduct 401k exp?

[Unregistered]

Tax afficianados,
I am looking to reduce the SE tax on a Sched C for a friend. Is there any way to deduct retirement account contributions on a C? Thanks, Dan M, PA

[Lion]

Only for Employees

The short answer is not for the Schedule C owner, but he can provide benefits to his employees that he would deduct on his Sch C. His own retirement contributions and health care premiums are adjustments to income, unless not enough C income to cover premiums, then to Sch A. Did you have him check for items he paid for by cash from his pocket for the business? Or on his personal credit card? Did he check his mileage log and calendar to pick up all his business miles? Buy any new capital items? Run any ads or sponsor any Little League teams? Go down last year's list with him and then go down the list of items he did not have last year in case one or more of them applies now.

[Matt Sova]

S-Corp 06

You could look at electing S Corp status for 2006 if it makes sense from a cost point of view.