BBmack
Level 2
07-13-2022
12:11 PM
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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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qbteachmt
Level 15
07-13-2022
01:02 PM
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"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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