How to resolve ProConnect Tax 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. Go to Input Return​⮕Income​⮕Passthrough K-1's​​⮕Partnership Info (1065 K-1)
2. Select Lines 11-20 tab.
3. Scroll down to Line 14 - Self-Employment section.
4. Verify the amount in (14A) Net earnings from self-employment income is correct and doesn't need to be adjusted.

The program reduces self-employment tax for depletion and section 179 only if the Not a passive activity box is selected.