Section 1401(a) Old-age, survivors, and disability insurance
"In addition to other taxes, there shall be imposed for each taxable year, on the "self-employment income" of every individual, a tax equal to 12.4 percent of the amount of the self-employment income for such taxable year."
The key term above is "self-employment income," which has a specific definition in Section 1402(b):
"The term "self-employment income" means the "net earnings from self-employment" derived by an individual..."
Which sends you to Section 1402(a) Net earnings from self-employment:
"The term "net earnings from self-employment" means the gross income derived by an individual from any "trade or business" carried on by such individual..."
From the 1/2 post, you can only have "gross income" if you are engaged in the profitable exercise of federal privilege, but in this case it is further defined as from any "trade or business" which is specifically defined.
You'll note that the definition in Section 1402(c) sends you to Section 162 for clarity, but Section 162 uses the term "trade or business" but does not further define it.
For that you have to go to:
Section 7701. Definitions
"(a) When used in this title, where not otherwise distinctly expressed or manifestly incompatible with the intent thereof-"
As "trade or business" is used in several different sections, but not 'distinctly expressed' elsewhere, the definition here applies to the term used in Section 1402(a).
Section 7701(a)(26) Trade or business
"The term "trade or business" includes the performance of the functions of a public office."
And please refer to the 1/2 post for how the Supreme Court tells you to interpret that pesky word 'includes.'
So, Mr Researcher, explain to us (and your clients who pay you to pretend you don't know what the code says or how to read it), how is it you think that the average self-employed person, who is NOT performing the functions of a public office, is liable for the tax under Section 1401?
I really hope you do come back to this. I fired my CPA because he could not answer my questions and stopped responding, because he was in on the fraud and profiting from it.
Again, tell me how you DO NOT HAVE A CONFLICT OF INTEREST?
2/2
Let's begin our analysis here with:
Section 1401(a) Old-age, survivors, and disability insurance
"In addition to other taxes, there shall be imposed for each taxable year, on the "self-employment income" of every individual, a tax equal to 12.4 percent of the amount of the self-employment income for such taxable year."
The key term above is "self-employment income," which has a specific definition in Section 1402(b):
"The term "self-employment income" means the "net earnings from self-employment" derived by an individual..."
Which sends you to Section 1402(a) Net earnings from self-employment:
"The term "net earnings from self-employment" means the gross income derived by an individual from any "trade or business" carried on by such individual..."
From the 1/2 post, you can only have "gross income" if you are engaged in the profitable exercise of federal privilege, but in this case it is further defined as from any "trade or business" which is specifically defined.
You'll note that the definition in Section 1402(c) sends you to Section 162 for clarity, but Section 162 uses the term "trade or business" but does not further define it.
For that you have to go to:
Section 7701. Definitions
"(a) When used in this title, where not otherwise distinctly expressed or manifestly incompatible with the intent thereof-"
As "trade or business" is used in several different sections, but not 'distinctly expressed' elsewhere, the definition here applies to the term used in Section 1402(a).
Section 7701(a)(26) Trade or business
"The term "trade or business" includes the performance of the functions of a public office."
And please refer to the 1/2 post for how the Supreme Court tells you to interpret that pesky word 'includes.'
So, Mr Researcher, explain to us (and your clients who pay you to pretend you don't know what the code says or how to read it), how is it you think that the average self-employed person, who is NOT performing the functions of a public office, is liable for the tax under Section 1401?
I really hope you do come back to this. I fired my CPA because he could not answer my questions and stopped responding, because he was in on the fraud and profiting from it.
Again, tell me how you DO NOT HAVE A CONFLICT OF INTEREST?