How to resolve Lacerte diagnostic ref. 11009

This article will help to resolve the following diagnostic:

• 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". (ref. #11009)

To resolve, follow these steps:

1. Click on the diagnostic from the Diagnostics tab.
   • This will take you to field (14a) Net earnings from self-employment income. Otherwise, you can get there by:
     1. Open the Income menu.
     2. Go to Screen 20.1 Passthrough K-1's.
     3. Select Partnership Information.
     4. Choose the appropriate Partnership K-1.
     5. Scroll down to Line 14 – Self-Employment.
2. Verify the amount in (14a) 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.