Section 1231 Losses and SE tax

[jrjames]

I have a partnership who made a profit but also had a section 1231 loss on sale of company assets. When the section 1231 losses flow to the partners individual returns the amount is not subtracted from amount subject self employment tax. Am I doing something wrong or do section 1231 losses not reduce ordinary income from the same partnership for self employment purposes.

Thanks

[lbbwest]

I have a partnership who made a profit but also had a section 1231 loss on sale of company assets. When the section 1231 losses flow to the partners individual returns the amount is not subtracted from amount subject self employment tax. Am I doing something wrong or do section 1231 losses not reduce ordinary income from the same partnership for self employment purposes.

Thanks

Instructions to the SE Tax Schedule Pg SE-4. Good luck, lbb