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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
contributions.
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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Last modified: May 25, 2011