Why do I have an income when our business declared a loss? i noticed on schedule K-1, page 2, line 14, code C, Gross non-farm income is almost $6000. Why is that?

[scottyhow]

Why do I have a  positive income of $6000 on schedule K-1, page 2, line 14, code C, non-farm income when we had a loss?

[Anonymous]

14c goes nowhere unless you are a farmer  - then it affects calculation of estimated taxes.   

Box 14 of the partner’s K-1 displays an entry C showing profit before deductions. Gross income from line 3a is going to line 14c on the K and then to the K-1 entry. How is this number calculated?The amount on line 14c is non-farm income.  

Line 8, Total Income, Page 1, Form 1065 (divided by ownership percentage of general partners vs limited partners)

plus Line 3a, Other gross rental income (loss), Form 1065, Page 4, Sch. K

minus Form 1065, page 1, lines 5 and 6

if you are a limited partner this line shouldn't appear.  

[coxmargery]

OK, so then if my K-1 has a Gross Amount in 14 - C, I can ignore it (since it is non-farm income) when I complete Federal form 1065?  Turbotax instructions seem to want both 14 - A (self-employment earnings - good) AND 14 - C amount but then adds them together so my income is greatly overstated!  Am I interpreting Turbotax instructions incorrectly?  Thanks, everyone!

[coxmargery]

Sorry, I figured it out!  Had made a different entry in another location that skewed my form.  All good now.  

[KIngaBeata]

I have the same issue, how did you fix it? Where did you enter the wrong info?

[ReneeM7122]

You may need to use forms mode to remove line 14c.

How do I view and delete forms in TurboTax Online?

• Open or continue your return in TurboTax.
• In the left menu, select Tax Tools and then Tools.
• In the pop-up window Tool Center, choose Delete a form.
• Select Delete next to the form/schedule/worksheet in the list and follow the instructions.

@KIngaBeata

[tuxedorose]

@coxmargery   Hi. im having the same problem you had .   what did you discover was the mistake you made that you said you fixed?

[season1974]

Yes, I wish the person would have explained the issue they fixed. I'm having the same problem but I don't know how to fix it. 

[MarilynG]

Per Expert @Irene2805:

"Enter both amounts.  The amounts in Box 14, with Codes A and C, just describe the type of income reported in Box 1 of the partnership K-1.  They are not added to income.  

• Code A indicates that the income is considered self-employment and Schedule SE has to be generated.
• Code C is used to trigger the nonfarm optional method on Schedule SE (Form 1040)."