1065-US: Calculating Schedule K, line 14a - Net earnings from self-employment (FAQ)

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Question

How does UltraTax CS calculate Schedule K, line 14a - Net earnings from self-employment?

Answer

UltraTax CS calculates self-employment earnings (SE) per activity for partners in the Partner's Self-Employment Worksheet based on the type of partner selected in the Partner tab in the Partner Information window in View > Partner Information.

  • General Partner and LLC Member (SE Income) calculate SE for all applicable items.
  • Limited Partner and LLC Member (SE on services) calculate SE only on guaranteed payments for services. Enter the amount of guaranteed payments for services in Screen SepK in the Schedule K folder. The amount you enter will be allocated to all partners based on their profit percentage. Use the Ptr Alloc button to allocate this amount to the appropriate partners.
  • LLC Member (No SE) will not calculate self-employment earnings.

Note: Enter an amount in the Net earnings (loss) from self-employment (Force) field in Screen SepK to override the self-employment income UltraTax CS calculates. Use the Ptr Alloc button to allocate this amount to the appropriate partners. (This will eliminate the supporting worksheet for the partners.)

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