Partnership Compensation

[Guest c2ddave]

The prior TPA used K-1 income and reduced it by a Schedule E for unreimbursed partnership expenses. Is this correct? Where can I find instructions on what to reduce K-1 income by?

[Archimage]

I don't know any cites but that is correct. You will take the amount from line 15a from the K-1 and reduce it by unreimbursed partnership expenses from schedule E and section 179 depreciation (located on K-1 also).

[Guest c2ddave]

Can we do an example using the following info from K-1:

1. Ordinary income -36

4. Guaranteed Pmts 124

12. Sec. 179 1

13. health Premiums 14

14. SE earnings

A. 88

C. 80

18 Tax Exempt Income .5

19 Distributions 1

What is earned income?

[jaemmons]

http://www.irs.gov/instructions/i1065sk1/ch02.html#d0e1064

[Guest c2ddave]

This doesn't necessarily answer the example.