Self-employment income calculation for general partners and LLC member-managers
For general partners and LLC member-managers, UltraTax CS uses the amount in
Net earnings (loss) from self-employment
on the K1-4 screen. The application reduces the amount by the following:- Auto expenses.
- Home office expenses.
- Depreciation and section 179 expense.
- Depletion.
- Unreimbursed partnership expenses (entered in theK1-6screen).
- Employee business expenses from Form 2106 with a special occupation code 4.
- Other expenses entered inOther deductionson theK1-3screen.
For limited partners and other LLC members, these separately stated partner expense items won't reduce the amounts entered in
Net earnings (loss) from self-employment
on the K1-4
screen.The Net Earnings from Self-Employment Worksheet gives you an audit trail of the calculation.
note
Schedule K1 expenses included in the calculation of net self-employment earnings may be further limited by basis and at-risk calculations.
