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Question

Why isn't section 179 expense included in the calculation of Schedule K, line 14a - Net earnings (loss) from self-employment?

Answer

Schedule K, line 14a is calculated using the Worksheet for Figuring Net Earnings (Loss) From Self-Employment. Form 1065 instructions for line 4a of the Worksheet for Figuring Net Earnings (Loss) From Self-Employment state, "Also include other ordinary income and expense items (other than expense items subject to separate limitations at the partner level, such as the section 179 expense deduction)… ."

Related topic: Self-employment FAQs (1065)

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