Do I need to pay self-employment tax on personal investments?

Posted by admin
illuminate asked:


I’m self employed, but aside from my business income, I have personal investments, which have produced gains of about $20K in 2007. Do I need to pay SE tax on that or just my business income? Thanks for your help.

EMERSON
Share and Enjoy:
  • Digg
  • Sphinn
  • del.icio.us
  • Facebook
  • Mixx
  • Google

This entry was posted on Saturday, October 24th, 2009 at 8:25 pm and is filed under United States. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.

« Does anyone know what happened to investments in the Hartford?
What type of investments should I get into? »

3 Responses to “Do I need to pay self-employment tax on personal investments?”

  1. DON Says:
    October 25th, 2009 at 3:12 am

    RORY

    You need to ask a accountant

  2. FABIAN Says:
    October 28th, 2009 at 1:28 pm

    WILBURN

    No, the SE tax only applies to your business income, on your schedule C. It doesn’t apply to your investment income on schedule D

  3. ANDREA Says:
    October 30th, 2009 at 2:52 pm

    MARSHALL

    Your Business Income is reported on Schedule C and the net is subject to SE Tax. The investments are reported on Schedule D or B or directly on the 1040 in the case of interest or dividends. You may want to seek the help of a professional tax preparer. Given the level understanding that you seem to have they may just save you more than they will charge you. Normally Schedule C offers a number of deductions for expenses that you may not be aware of.