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LLC 1065 PASSIVE FARM INCOME LISTED AS SELF EMPLOYMENT - TURBOTAX BUSINESS

I prepared the 1065 and K-1s for our farmland using Turbotax Business.  We (my wife and I) earn 1/3 of the revenue and pay 1/3 of the expenses.  We contribute the land and the other party contributes all labor and management expertise.  We spend maybe 10 hours a year on this, whereas the other party contributes 100s of hours, maybe a thouseand.  By all accounts, we do NOT materially participate.  We answered as such in the Turbotax questionairre.  However, Self-employment earnings are reported on line 14 on the K-1.  

 

Am I correct in that this should not be self employment earnings?  If so, how do I get the program to reflect this on the K1s?

 

Thanks in advance!

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1 Reply
PatriciaV
Expert Alumni

LLC 1065 PASSIVE FARM INCOME LISTED AS SELF EMPLOYMENT - TURBOTAX BUSINESS

Are you general partners in the partnership? This designation, along with material participation, will trigger income on Schedule K-1 for Box 14.

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