1065-US: Inclusion of Section 179 expense in the calculation of Schedule K (FAQ)

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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 in the Form 1065 instructions. 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)…"

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