Partnership Other Rental Activities-screen 18 - SE income or not?

[Thowcpa]

Why does Lacerte include this net income as Self-Employment income?  Would assume that the program would consider it to be not Self-Employment income especially since there is a check box that is "Property is not a passive activity".  If the program automatically assigns it to SE, then where can you override that?

[sjrcpa]

What is being rented?

Why isn't it SE income?

[Thowcpa]

It's rental, not SE income.  So why have "Not passive activity" checkbox if it's going to treat as SE anyway?

[TaxGuyBill]

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@Thowcpa wrote:

It's rental, not SE income.  So why have "Not passive activity" checkbox if it's going to treat as SE anyway?

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Rental of WHAT?  Real estate? If it is real estate, why is it being entered as "other" rental activities rather than rental of real estate on Form 8825?  The more detail you can give, the more likely we can help you.

[Thowcpa]

I don't mean to sound like a jerk here but my question is not to  the treatment of the income.  I know how it should be treated.  My question is why Lacerte treats income entered on the Other Rentals screen as SE income and also has a checkbox for "not a passive activity"?  Why have the checkbox if net income from this screen are already flowing to Sch SE?

[TaxGuyBill]

My point was that you might be entering it in the wrong place in the software.  If you don't want to tell us the details, that severely limits any help anybody can give you.

In answer to your question, "passive activity" can be a completely different subject than if it is subject to SE tax.  So the check box is for telling the program if it is passive or not, but that doesn't necessarily affect whether it is subject to SE tax or not. 

If you think it is not subject to SE tax, then telling us why that is the case may help us to redirect you for how to enter it into the software (but it may depend on exactly why it is not subject to SE tax).

[abctax55]

Not to be a jerk but I can't get Lacerte to produce this 'issue' at all, no matter what box(es) I check.

Exactly what entries have you made?  Anything on Line 14?  Try looking at batch entry (Ctrl W) to see if there's something random entered

Try checking the 'delete for this year' box & see what happens.   

Or you could delete the entire Screen & re-enter the info.

Or, use the 'jump to' function to see if you can track done exactly where the SE tax is coming from.

Best I can do with the info you've provided; hope one of these helps.

Otherwise, you may have to send the sanitized file to support.

[Thowcpa]

Screen 18, "Other Rental Activities"

  Gross Rents  $723,163

No expenses.

Partnership has 7 partners

Partner 1 - Trust 20%

Partners 2-4 Individuals 20% each

Partners 5 & 6 Individuals 8.116% each

Partner 7 Individual 3.768%

Lacerte carries $578,532 to Schedule K, line 14a (Net of Trust %)

I cannot find anything that either designates that this should flow to Net Self Employment Earnings or not.  

[abctax55]

It's being driven by 'how' you have each partner identified, in Screen 7 (General Partner/LLC Manager, Passive...) under Miscellaneous Info.

And you still have stated 'what' is being rented; why is line 18, not 17?