K1 box 14 Self employment earnings

[Pacun]

I have a client who shares 50% of partnership. He does all the work so he has 90K each year as guaranteed payments. This year the company made $100K so his K1 shows 5K ordinary business income line 1 and 90K as guaranteed payments on line 4. On line 14 Self-employment earnings (loss) the K1 has two entries:

A 95K
C160K

Is that a mistake since the partnership didn't make more than 100K even with the other partners income?

[jklcpa]

I have a client who shares 50% of partnership. He does all the work so he has 90K each year as guaranteed payments. This year the company made $100K so his K1 shows 5K ordinary business income line 1 and 90K as guaranteed payments on line 4. On line 14 Self-employment earnings (loss) the K1 has two entries:

A 95K
C160K

Is that a mistake since the partnership didn't make more than 100K even with the other partners income?

 

It's not a mistake. Line C is the gross farm, or nonfarm, income allocated to the partner. The total of this line for all partners' shares would tie to line 3 of the 1065 and line 14c on page 4.

[Pacun]

I am glad 3 people like your answer because I was about to reject the K1 because I thought that that entry in Box 14 C is for farm income. After I went to ATX and I enter the information, Box 14 code C is for "gross receipts", which doesn't play in tax calculation. So I guess the K1 is correct.

[jklcpa]

Sometimes it takes a village...?