Income (or loss) from a trade or business carried on by a legally adjudged incompetent or by a guardian on their behalf is included in computing the incompetent's NESE.

Assume a business is carried on by a guardian as agent for an incompetent if they, the incompetent or their immediate family receives or benefits from some or all of the income.

The distributive share of earnings is included in determining NESE unless the incompetent is a limited partner.

An employee hired by the guardian may be an employee of the incompetent, unless excluded from coverage under the Act.