This is a great thread with much good info, but it kinda dwindled on specifics at end. Box 14, Code C is gross non farm and really it should not be there (nor code B for that matter) IF that K-1's member is listed as Limited or Other LLC Members. In the past I've noticed Turbo Tax for Business will sometimes not update this properly on importing last yrs member data on doing form 1065. And also if you go into the edit member data and make sure you finish it totally before backing out. I remember seeing this show up on K-1s as folks said here for limited or other members. I've made it fix by going back into TB Tax's edit member data and again choosing "limited other member" and then finishing it all the way through the questions for that member data edit.
Bottom line if you participated more than 500 hrs you should not have been designated as "limited or other member" on the K-1 by whomever did the 1065 return. If the member is doing that much work (or other mitgating circumstances listed elsewhere in TB Tax's help files) then that member should be edited to "General Partner or Managing member" when the 1065 return is done and filed.
