If I net the S179 amount against the income amount on the line for SE earnings on the K1 input sheet, Sch E, page 2 continues to flow correctly, and the net amount carries to the SE schedule. However, I then have to override the S179 deduction on the separate line of the Sch SE Bus Income worksheet or there will be a double deduction for SE purposes. Doing this allows the efile to be created with no error messages.
Anyone see any problem with this? The original efile rejection message warned that the IRS could adjust the tax amount due/refund and said to paper file the return. But if Sch E shows income, S179 amounts, and the SE schedule shows a net of these amounts, would IRS automatically recalculate for any reason?