A major engineering firm operates as a 1065 with owners getting a guaranteed payment in box 4 of the k1 and their share of the large profit in box 1.
In the 1040 software, I see a variation in the WBI worksheet. Of course, both start with 199a income of the same amount.
Ultra tax reduces this by section 179, section 754, and debt-financed interest paid
Grant Thornton's 1040 program reduces the 199a income amount by SE tax, 401k, and health insurance.
In 25 years of tax prep, I've never seen two very respected software vendors have a worksheet that is so different.
Does anybody had an idea of what worksheet is correct to adjust the 199a income provided to us on the k1 as we prepare the 1040.
Mahalo
Bjorn
In the 1040 software, I see a variation in the WBI worksheet. Of course, both start with 199a income of the same amount.
Ultra tax reduces this by section 179, section 754, and debt-financed interest paid
Grant Thornton's 1040 program reduces the 199a income amount by SE tax, 401k, and health insurance.
In 25 years of tax prep, I've never seen two very respected software vendors have a worksheet that is so different.
Does anybody had an idea of what worksheet is correct to adjust the 199a income provided to us on the k1 as we prepare the 1040.
Mahalo
Bjorn