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Self-Employment

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 the
    K1-6
     screen).
  • Employee business expenses from Form 2106 with a special occupation code 4.
  • Other expenses entered in
    Other deductions
     on the
    K1-3
     screen.
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.
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