Box 14 of the partner’s K-1 with an entry C shows profit before deductions. Line 14c is the gross nonfarm income for a general partner. It is needed for the partners to figure their net earnings from self-employment under the nonfarm optional method on their 1040 returns. How to calculate it:
1. Form 1065, page 1, line 8 Total Income (loss) multiplied by the ownership percentage rate (in decimal form) of the partner
2. Plus Form 1065, page 4, Schedule K - Partners' Distributive Share Items, line 3a Other gross rental income(loss)
3. Minus Form 1065, page 1, line 5 - Net farm profit(loss) and line 6 - Net gain(loss) rom Form 4797, Part ii, Line 17.
Limited partners don't have amounts allocated on 14c.
