11009
The following diagnostic is generating:
Partnership # {PrefixNum} : The amount of Section 179 expense does not reduce the amount self-employment income for passive partnerships. Verify the amount entered in "Net earnings from self-employment income".
Solution:
1. Click on the diagnostic from the Diagnostics tab 2. In the Passthrough K-1 screen verify the amount of "Net earnings from self-employment income" is correct and doesn't need to be adjusted. Per F1 Help in Lacerte for "Net earnings from self-employment income" -- The allowable deduction is limited to the self-employment income entered in "Net Earnings from Self-Employment" (Screen 20, code 4), (reduced by depletion and section 179) plus other self-employment income reported on this return.
