You are correct. Your installment sale should not be counted as self-employment income. So something on your K-1 entry is telling it that it is self-employment income.
Which box of your K-1 is the installment sale reported?
Is this income reported in box 1 or 2 of your K-1?
Box 1 is business Income
Box 2 is Rental Income
Do you have checkmarks in any other box? If you have a checkmark in box 14 and code a and c this will tell TurboTax it is self-employment income and it will be taxed as such. If this box is checked, then you would need to get another K-1 (if you did it yourself using TurboTax Business, you can go back through and change how the income is reported in TurboTax Business. You would need to walk back through and check your answers paying attention to the questions regarding activity and materially participating and how the income is reported and look at box 14 to be sure you are not reporting it as self-employment income on the K-1. If you had an accountant do your business return, you will just need to contact them to get that changed.
If this is not the case, please respond with more information on what boxes you have amounts reported on your k-1.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
