Oil & Gas Schedule C subject to SE by someone who is passive investor

USA Discussion in 'Individuals' started by khaynes1971, Dec 7, 2018.

  1. khaynes1971


    Dec 7, 2018
    Likes Received:
    I have a return I filed which included some Oil & Gas interest. Reported the Royalties on Sch E. Reported the working interest on Sch C - NOT SUBJECT to SE Tax. The spouse is the one who received the 1099-MISC with Box 2 and Box 7. I do not think she should be subject to SE tax since she has nothing to do with the operations and lives in a different state.
    Received a notice stating the income may be subject to SE tax and I am to respond why she should not be subject to SE tax. Do I have a case to avoid SE tax?
    khaynes1971, Dec 7, 2018
    1. Advertisements

Ask a Question

Want to reply to this thread or ask your own question?

You'll need to choose a username for the site, which only take a couple of moments (here). After that, you can post your question and our members will help you out.