QBI reduction for SE tax on partner level

[jgcpa]

I noticed that Proseries reduces partner QBI  in the amount of  1/2 SE tax times a ratio of( k-1 box 1 ordinary income )/over( box 14 self employment earnings)- In other words, Proseries does not reduce QBI by the portion of 1/2 SE tax attributable to guaranteed payments. Does this seem in accordance with the code and regs.?Drake reduces QBI by the full 1/2 SE tax and does not apportion out the part attributable to guaranteed payments.  

Thoughts please? Which is correct? Do i need to override?

[Accountant-Man]

If QBI is calculated by excluding the GP as part of the QB Income, then why would the net QBI allow a deduction of 1/2 of the SE tax on income the QBI doesn't include? I think Drake is wrong.

[IRonMaN · Accepted solution]

I think Drake is wrong if that is how they are working it.