K-1 Line 14

[barzillai]

Client is in a General Partnership with his brother.(Farming) His K-1 lists his ordinary income, but has nothing on line 14 indicating it is SE income(which it is). It is not a problem for me to prepare the return correctly, however, shouldn't the K-1 indicate this? And if not, what if line 14 for on the K-1?

P.S. I looked this up in TTB (Partnerships and LLC's). The example showed the Sched K with SE income listed, but nothing listed on K-1 for the Partner. Yet, the Partner's personal return included the income on Shed SE. Is this the correct way to do this? I just want to be ready when I have to do a 1065. Thanks!

[Bees Knees]

TTB example should have also showed the SE earnings in box 14 of the K-1. That was a mistake.

[barzillai]

Thanks for the reply. It helps me to know I am on the right track. As I stated, I can prepare the return easy enough. I am wondering, though, if I should advise the client they should have their 1065 amended to correct the K-1's. (The 1065 was prepared by someone else.) Is it really necessary to do that as long as the income is reported correctly on the individual returns?

[Bees Knees]

It is not necessary to correct the 1065 K-1. Those things have mistakes on them all the time. The only thing you need to worry about is getting the 1040 correct.