As a general rule, the starting point for determining a general partner's self-employment earnings is the partner's distributive share of a partnership's ordinary trade or business income reported on line 1 of Schedule K-1 (Form 1065). Whether or not the partner materially participated in the partnership's business is irrelevant. Added to this amount are certain guaranteed payments under IRC Sec. 707(c) and any other separately stated items of trade or business income or expense.
If you were a general or limited partner in a partnership, include on line 1a or line 2, whichever applies, the amount of net earnings from self-employment from Schedule K-1 (Form 1065), box 14, code A. General partners should reduce this amount by certain expenses before entering it on Schedule SE. See your Schedule K-1 instructions. If you reduce the amount you enter on Schedule SE, you must attach an explanation. Limited partners should include only guaranteed payments for services actually rendered to or on behalf of the partnership.