Federal Tax

I have a new client for 2012 

In reviewing his 2011 tax return he has a K1 with and ordinary loss (Line 1) of 90,233 and guaranteed payments ( Line 4) of 141,284

Line 14 Self-employment earnings are showing only the 141,284 which was picked up on his 2011 tax return and he paid SE tax on the 141,384

Should line 14 Self Employment earnings have read 51,051 ( 141,284 less 90,233). 

Should his preparer netted out the 90,233 loss with the guaranteed payments of 141,284 and paid SE tax on 51,051?

 

Please advise 

Gary Geisenheimer

516-883-0233

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Gary Geisenheimer
CPA
Gary Geisenheimer
Woodbury NY
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Gary, I think you might be right about that. ------------------------------------------- Sandra Johnson SANDRA JOHNSON, CPA PC Bellmore NY -------------------------------------------
Original Message: Sent: 03-19-2013 12:38 From: Gary Geisenheimer Subject: 2011 tax return K1 I have a new client for 2012 In reviewing his 2011 tax return he has a K1 with and ordinary loss (Line 1) of 90,233 and guaranteed payments ( Line 4) of 141,284 Line 14 Self-employment earnings are showing only the 141,284 which was picked up on his 2011 tax return and he paid SE tax on the 141,384 Should line 14 Self Employment earnings have read 51,051 ( 141,284 less 90,233). Should his preparer netted out the 90,233 loss with the guaranteed payments of 141,284 and paid SE tax on 51,051? Please advise Gary Geisenheimer 516-883-0233 ------------------------------------------- Gary Geisenheimer CPA Gary Geisenheimer Woodbury NY -------------------------------------------

Gary, I agree with Sandra, but have one question.  What amount from the K1 flowed onto this 2011 personal return?

I had a similar situation a few years ago when the TP received not only a K1 with guaranteed payments, but also was sent a 1099MISC for the amount of the guaranteed payments.  It took several months to get the issue resolved.

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Stephen Mankowski
QUANTUM MGMT SERVICES
Hatboro PA
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Original Message:
Sent: 03-19-2013 12:38
From: Gary Geisenheimer
Subject: 2011 tax return K1

I have a new client for 2012 

In reviewing his 2011 tax return he has a K1 with and ordinary loss (Line 1) of 90,233 and guaranteed payments ( Line 4) of 141,284

Line 14 Self-employment earnings are showing only the 141,284 which was picked up on his 2011 tax return and he paid SE tax on the 141,384

Should line 14 Self Employment earnings have read 51,051 ( 141,284 less 90,233). 

Should his preparer netted out the 90,233 loss with the guaranteed payments of 141,284 and paid SE tax on 51,051?

 

Please advise 

Gary Geisenheimer

516-883-0233

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Gary Geisenheimer
CPA
Gary Geisenheimer
Woodbury NY
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