Folks:

For a real estate partnership return I have entered income and expenses in Screen 17 and depreciation from the depreciation button on that screen.  I have three problems/questions!

First, the 1065 reflects the gross income but does not include any deductions for expenses.

Second, all income and expense show up on Partner 1's K-1 and none on Partner 2's K-1.

Third, on Partner 1's K-1 the gross business income is reported as self-employment earnings even though it is passive.

Is this stuff correct?

Micah