SEP Plan Contribution

[peanut]

Client has 2 separate schedule c businesses- one has a loss of $ 9000 & the other income of $ 12000. Do we have to net the 2 businesses to calculate the SEP contribution ( $ 3000) or can the SEP be based on the $ 12000 business solely? In computing the base is 1/2 of the SE tax on the $ 3000 used to deduct from the $ 12000 or 1/2 of the $ 12000?
Thank for your reply

[JG EA]

This thread answers your question I think.:

http://www.thetaxbook.com/forums/showthread.php?t=8587&highlight=contribution

I really like your name. Very self assured, descriptive of your job, and yet with a question mark about your nobility.

[Kram BergGold]

Sep

Every business must have it's own SEP. If client does not have a SEP, then client should open one for the business with a profit. If client has a SEP for business with a loss, then client has to open a new one for business with a profit. The contribution will be 18+% of $12,000.