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1065 not including guaranteed payments in K-1 SE income

Forum|Forum|3 years ago
November 1, 2022
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I feel like I must have some box checked wrong somewhere because:

1. In TT Business for a 1065, if in step by step I say the partnership paid guaranteed payments, it tells me I'm supposed to manually put a deduction for the guaranteed payments as a general expense under rental income. However it seems to automatically put it on my schedule K1 as an ordinary business loss. Is the note wrong? Or should TT not be putting it on line 1?

2. What it's putting on my K1's are -(guaranteed payments) on line 1, +(guaranteed payments) on line 4, cancelling them out and saying the partners have 0 self-employment income. The self-employment earnings worksheet shows that as well, that they cancel out and there's no SE earnings. Which is not correct. My understanding is all guaranteed payments including that paid for partner's insurance is subject to SE tax.

Also, contributions to retirement plans seem to subtract off income. So should Roth contributions not be entered at all on the 1065 return?

Thanks!

TurboTax Business Windows

Best answer by Anonymous_

I am not sute if you have some sort of input error but I cannot seem to reproduce your results. I have a figure on my test K-1s with amounts on Line 14 with an A code.

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A

Anonymous_Answer

Employee

I am not sute if you have some sort of input error but I cannot seem to reproduce your results. I have a figure on my test K-1s with amounts on Line 14 with an A code.

Untitled.png21.png

C

cindi11Author

Thanks, that did the trick! Seems there are some things you just can't do on forms, you have to go through the step by step. (Although I did go through it at one point and that's where it told me to subtract it as an expense manually, so not sure why I never got this screen.) Anyway, thanks.