Proconnect not recognizing "General Partner / LLC Manager?" status for partnership return

mackenziehashbasis · ‎08-31-2023

Hi! I'm filing a partnership return for a client now. There are two partners that would be considered general partners and everyone else is a limited partner.

I selected the "General Partner / LLC Manager?" designation for the partners that are general partners. However, their earnings aren't showing up as self-employment income on their K-1s, nor is the Analysis of Net Income (Loss) per Return correct on Form 1065 (there's an incorrect split between general partners and limited partners - all net earnings are showing up on the limited partner line). How can I fix this?

Thanks!

PhoebeRoberts · ‎09-01-2023

Everything showing up on the limited partner line is correct for an LLC taxed as a partnership, per the 1065 instructions.

I assume the type of income the LLC has is generally subject to SE tax? If it's coming from a pass-through entity, you've entered income subject to SE tax even if the K-1 you got didn't show it? You can override or adjust net earnings from self-employment under Schedule K, Other Schedule K Items, if needed.