K-1 Line 14 Self-employment earnings for only one member

[gy1027]

Hi, I am a new user of TurboTax Business. After a few days of effort, I have successfully filed my two-member LLC's tax return using the program, but there's one thing that I'm still struggling with. My CPA used to put a certain amount in the self-employment section (line 14, Part III of K-1)  only on my K-1, but not on the other member's K-1. I can't figure out how to do this in TurboTax Business. Any assistance would be greatly appreciated.

[ThomasM125]

You may need to look on your Schedule K-1 Worksheet, next to the ID No. where you will see the Partner entity type. The code for that entry may need to be "I" for individual to generate self-emloyement income on line 14 of schedule K.

[gy1027]

Thank you for your answer. The partner entity has always been designated as "I." All income from the LLC is from rental properties, and I wish to allocate a specific amount to line 14 only for the managing partner, not for the other member.

[PatriciaV · Accepted solution]

The reporting of Self-Employment Earnings on Schedule K-1 Line 14 is determined by the "Partner Entity Type" designated under the Partner/Member Information section under Business Info during the interview. Look for the page "Tell Us More About This Member." You can also see/edit this information in Forms Mode at the top of each member's information on the Sch K-1 Wks.

For most partnerships/LLCs, general partners who are active in the business receive self-employment earnings. Limited partners who are not actively involved in running the business do not.

For individual, partnership, nominee-individual, nominee-partnership, or LLC/LLP member general partners, self-employment earnings is the partner's allocable share of amounts calculated on the Net Self-Employment Earnings Worksheet (SE Earnings Wks in Forms Mode).

For individual, partnership, nominee-individual, nominee-partnership, and LLC member limited partners, self-employment earnings are guaranteed payments from line 4c plus adjustments entered on the Net Self-Employment Earnings Worksheet, line 4d. 

If there are certain rental real estate activities, or other adjustments to self-employment earnings, you should enter an amount on the Net Self-Employment Earnings Worksheet. 

[gy1027]

Thank you for providing such a comprehensive answer. I truly appreciate it.