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I have a full time job. I also own a LLC (sole proprietor). I have some profits from my LLC this year. My spouse and I file jointly. My spouse is not currently employed.

Can I move the profits from the LLC to my spouse's IRA to deduct it from our federal income tax burden?

Thanks

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Assuming you're in the US, you can set up a spousal IRA and deduct it from your taxable income you qualify. https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-ira-contribution-limits It won't come directly out of the business, but it is an above the line deduction that reduces AGI.

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  • This is true even if he didn't have an LLC and was an employee. The LLC doesn't give any benefits in this case.
    – minou
    Commented Dec 31, 2018 at 21:46
  • @JeffO'Neill Right the only way Richard could defer more taxation specifically from having the LLC would be setting up a qualified plan, but that would have to have been set up earlier.
    – T. M.
    Commented Jan 3, 2019 at 2:12

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