1040-US: Keogh deduction still present when an overall loss from self-employment income exists

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Question

The taxpayer has multiple business activities and an overall loss from self-employment income. Why is a Keogh deduction calculating?

Answer

As long as the trade or business under which the plan was established has net earnings (compensation), you can make contributions. UltraTax CS uses the net earnings from the activity identified in the Form and Unit fields in Screen Keogh for purposes of Keogh / SEP calculations. To adjust the amount UltraTax CS uses, enter an adjustment amount in the Adjustment to earned income field in Screen Keogh. Negative entries are treated as subtractions.

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