SEP IRA question

Suppose I have a schedule C sole prop. business that nets $40,000. I created a SEP-IRA that I make contributions to, from this business.

And suppose I have a second schedule C sole prop. business that has a loss of $10,000.

These get combined on the 1040 to show income of $30,000.

When I calculate the maximum SEP-IRA contribution that I can make, do I use the $40,000 number from business 1, that I created this SEP-IRA for?

Or do I use the combined net of $30,000 from both businesses?

Thanks.

Reply to
way222
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Combined.

Reply to
Alan

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