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Lev, Tax Advisor
Category: Tax
Satisfied Customers: 29580
Experience:  Taxes, Immigration, Labor Relations
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I am the sole proprietor of medical practice. In 2015 I paid

Customer Question

I am the sole proprietor of medical practice. In 2015 I paid my employee $65,000 from the defined benefit retirement plan for the practice. Can I deduct that amount on my 2015 personal taxes?
Submitted: 1 year ago.
Category: Tax
Expert:  Lev replied 1 year ago.
Wages paid to employees are generally deductible.In additional to wages - you may deduct employment taxes and contributions you may to qualified retirement plan on behalf of your employees.
Expert:  Lev replied 1 year ago.
That is REGARDLESS how your business is organized. That is true for the solo proprietor,As long as that employee provided services for your business - wages and all related expenses are deductible.I am a little confused with your statement that you paid FROM the defined benefit retirement plan...If that is YOUR account and you took distribution out of that account - that distribution will be reported as your taxable income regardless how proceeds are used.Let me know if you need any clarification or have other tax related issues..I appreciate if you take a moment to rate the answer.Experts are ONLY credited when answers are rated positively.If you still have any doubts, need clarification - please be sure to ask.I am here to help you will all tax related issues.