Contributions to an IRA are based on earned income, which includes net earnings from self-employment. If you have a qualified retirement plan, such as a SEP, for your business, you can contribute to a deductible IRA only if your modified adjusted gross income (MAGI) level is below a set amount. If you don’t have a plan, there’s no MAGI limit for making a deductible IRA contribution. Or, you may choose to make a Roth IRA contribution (nondeductible), but there are MAGI limits whether or not you have a qualified plan.
Based on an IRS table, an amount that reduces a business deduction taken for payments on an auto leased for a minimum of 30 days.