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Level 3
July 13, 2022
Question

SE health insurance and working interest

  • July 13, 2022
  • 1 reply
  • 4 views

Owners of a working interest report on Schedule C and are subject SE tax. Are they also entitled to the SE health insurance deduction? Most W/I owners pay expenses but don't really perform personal services. Services are performed by the operator.

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1 reply

qbteachmt
Level 15
July 13, 2022

"Services are performed by the operator."

As either an employee or a contractor. That's no different than a General Contractor who never swings a hammer or plumbs a kitchen or installs flooring. I've never seen anything that makes this dependent on your tasks. Have a royalty interest instead of a working interest would be the type of line to draw.

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