179 for 1065

[gman]

The sec 179 flows thru to the individual return, but I am confused on what the k-1 line 12 should show. I would think it would be the income line 1 less the 179 taken on line 12
would equal the self employment earnings, but my program is carrying the total income without regard to 179.

Anyone know the correct way to handle that on 1065-k1

[WhiteOleander]

The ptnshp income does not deduct the sec 179 deduction. The Sec 179 flows through to the ptnrs for them to deduct on their individual returns.

[gman]

Thanks,

but I did state that i realized that if flows thru, my question is line 14 net earnings---should the 179 be deducted out on this line only so that it carries the correct amount to the se schedule???

[KJ Judd]

Section 179 is determined at the partnership level. At this point you don't know if the partner will be able to take Sec. 179 or not. (He may have other Sec. 179 & be over the limit, etc.)

THerefore I believe the correct amount on the self employment income line should be the full amount as your tax program is doing.

[David1980]

No adjustment for line 14. Per IRS Schedule SE instructions for partners in a partnership:

General partners should reduce this amount before entering it on Schedule SE by any section 179 expense deduction claimed, unreimbursed partnership expenses claimed, and depletion claimed on on oil and gas properties.