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Schedule K, line 14a self-employment income is not being reduced by Section 179 in Lacerte

SOLVED•by Intuit•3•Updated June 22, 2023

The self employment is reduced by Section 179 for general partners on the individual level before entering on the Schedule SE. Lacerte doesn't automatically reduce the self-employment by Section 179. Refer to the IRS Instructions for Form 1065 for more information.

Choose the applicable module below for instructions on adjusting this calculation.

  1. Go to Screen 22, Other Schedule K Items.
  2. Scroll down to the Self-Employment section.
  3. Enter an amount in the Net earnings from self-employment [A] field.
    • Enter the amount as a positive to add to the net earnings from self-employment.
    • Enter the amount as a subtraction to subtract from the net earnings from self-employment.
  1. Go to Screen 20, Passthrough K-1's.
  2. Click on the Partnership form the left navigation panel.
  3. Scroll down to the Line 14 - Self-Employment section. 
  4. Enter the (14A) Net earnings from self-employment. 
    • Lacerte carries this amount to Schedule SE, Part I but doesn't carry it to Schedule E, page 2. To also carry this amount to Schedule E, page 2, enter the amount under the Part III - Lines 1-10 - Partner's Share of Current Year Income (Loss) section.
 

Lacerte reduces self-employment tax for depletion and section 179 only if the Not a passive activity box is checked.

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