hgieben
New Member

Get your taxes done using TurboTax

Thank you for your reply and the link to the information.

 

Unfortunately, it doesn't say whether Section 179 deductions passed through from a K-1 can be applied to (i.e., subtracted from) earned income as calculated on 1040 Schedule SE.  TurboTax adds Box 12 and Box 14 from the K-1 to Schedule SE, even though the IRS instructions for Schedule SE specifically list Box 14 (which on the K-1 is used to report earned income), but not Box 12 (where Section 179 deductions are reported).

 

Thus, what TurboTax is doing on Schedule SE with respect to pass-through items from K-1s seems contrary to the IRS instructions.

 

I remain concerned.

 

Thanks,

Helmut