Why is the amount on line 12 of the K1P screen not adjusting the Schedule SE, line 2 amount?
Per IRS guidelines, the section 179 deduction claimed on line 12 only affects the amount on Schedule SE, line 2 when the partner is a general partner:
"If you are a general
partner, reduce this amount before entering it
on Schedule SE (Form 1040 or 1040-SR) by
any section 179 expense deduction claimed,
unreimbursed partnership expenses
claimed, and depletion claimed on oil and
gas properties. Do not reduce net earnings
from self-employment by any separately
stated deduction for health insurance
If the partner is a general partner, check the box General partner on the K1 Partnership K-1 screen and line 2 will be adjusted by the 179 expense deduction. As indicated above, other amounts may also adjust this figure -- a statement will appear in view to explain the total flowing to line 2.
Note: Only some partners are subject to SE tax, see Related Links below for details.