Employer contributions to a profit-sharing 401(k) are reported as a business expense on Form 1065 Line 18 and deducted from net income.
Profit-sharing contributions made on the behalf of partners are reported only on Schedule K Line 13(0) Code R and allocated to each partner on Schedule K-1. This amount does not appear on Form 1065 pg 1-4, so is not included in net income.
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