Question

Why do I have an income when our business declared a loss? i noticed on schedule K-1, page 2, line 14, code C, Gross non-farm income is almost $6000. Why is that?

Forum|Forum|6 years ago
June 4, 2019
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Why do I have a positive income of $6000 on schedule K-1, page 2, line 14, code C, non-farm income when we had a loss?

A

Anonymous

14c goes nowhere unless you are a farmer - then it affects calculation of estimated taxes.

Box 14 of the partner’s K-1 displays an entry C showing profit before deductions. Gross income from line 3a is going to line 14c on the K and then to the K-1 entry. How is this number calculated?The amount on line 14c is non-farm income.

Line 8, Total Income, Page 1, Form 1065 (divided by ownership percentage of general partners vs limited partners)

plus Line 3a, Other gross rental income (loss), Form 1065, Page 4, Sch. K

minus Form 1065, page 1, lines 5 and 6

if you are a limited partner this line shouldn't appear.

C

coxmargery

OK, so then if my K-1 has a Gross Amount in 14 - C, I can ignore it (since it is non-farm income) when I complete Federal form 1065? Turbotax instructions seem to want both 14 - A (self-employment earnings - good) AND 14 - C amount but then adds them together so my income is greatly overstated! Am I interpreting Turbotax instructions incorrectly? Thanks, everyone!

A

AmeliesUncle

I learned a great trick from Turbotax support that I want to share on this subject. You can right click on the line 14c amount in the Turbotax program and select override, then enter zero. Thank you to Marvin at Turbotax support for figuring this out. I hope this tip saves you the many hours it took me to find a solution.

@pelicanassets wrote:
I learned a great trick from Turbotax support that I want to share on this subject. You can right click on the line 14c amount in the Turbotax program and select override, then enter zero. Thank you to Marvin at Turbotax support for figuring this out. I hope this tip saves you the many hours it took me to find a solution.

Line 14c is SUPPOSED to have an amount on it, even if the business didn't have a profit. Don't override it to $0. It is a bit horrifying that somebody at TurboTax support told you how to force an incorrect K-1.