Peter Spuler, Jr. - Page 9

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          408(a) and (b).  Self-employed persons or sole proprietors are              
          treated as their own employers under a SEP plan.  See secs.                 
          401(c)(4), 408(k)(7).  The qualifying provisions for a SEP plan             
          are extensive.  We need not detail the requirements here.  While            
          petitioner may have maintained an account described as a SEP                
          account and made contributions to it in the years in issue, he              
          has not established that he was self-employed or a sole                     
          proprietor in the year in issue.  Petitioner acknowledges that              
          his solely owned corporation, SEC, did not receive income or                
          incur expenses in the years in issue.  Petitioner did not receive           
          any money from SEC as a self-employed person or otherwise.  In              
          fact, as indicated, petitioner was a full-time employee at                  
          Greenhorne & O’Mara, Inc., and received a salary from that                  
          organization during 1995 and 1996.  Based on the foregoing,                 
          petitioner is not entitled to the claimed deductions for SEP                
          Self-Employed Health Insurance Deductions                                   
               Section 162(l)(1)(A) permits self-employed individuals to              
          deduct amounts paid for health insurance.  As discussed above,              
          petitioner was not self-employed during the years in issue and              
          did not receive self-employment income.  Petitioner’s earned                
          income came from his salary as an employee of Greenhorne &                  
          O’Mara, Inc.  Accordingly, petitioner is not entitled to the                
          deductions for payments made for health insurance.                          

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