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1120S K-1 line 17AC is showing SE income?

Level 1
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Level 15

No it doesn't. Look at the K-1 codes in the instructions. The field for that in individual module is wrong. Has been discussed here but since the search function sucks I can't find it.

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Level 2

 I think this will take you to the thread where it was discussed earlier.  -https://proconnect.intuit.com/community/lacerte-tax-discussions/discussion/re-why-is-the-gross-incom...

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