Is it blocking due to At-Risk, or is it blocking due to a negative SE income in Box 14?

at risk is blocking it

Here is the info from the 1065 k1

line 1 ordinary loss of 8000

line 4a guaranteed payments for services  70,000

line 13m med insurance 12000 (which is included in 4a)

line 14a net earnings from SE 62,000

In all I'm reading the fact that 14a was 62k I believe I should be able to deduct the 12k on schedule 1 but in order to do that I have to override the at risk worksheet to allow the 12k health insurance. 

On the 6198 I entered the 12000 in the worksheet on line 6 guaranteed payments.  That flowed to line 3 on the 6198 but Proseries then wanted to divvy up the allowable expenses.  (between ordinary, loss, non deductible, health ins) I over-road it to only allow the Health Insurance.

Do you believe I am correct in reporting this way?

Without researching it, I agree that the At-Risk limits should not restrict the Self Employed Health Insurance deduction.

As for how to fill out the 6198, I'm not sure.  I don't have the program open to see the worksheet, but my thought is the health insurance should not be flowing to line 3.  But it is extremely rare that I need a 6198 (for me, when thing are limited, they are usually entirely limited by regular Basis, not At-Risk), so I am NOT fluent on it.

Thanks.  I'm waiting for more info from client so if anyone else has any ideas I'm happy to hear them.  

You entered the $12K on Line E6 of the 'regular' 6198 worksheet but did you also enter the $70k of guaranteed payments (i.e., as 'income from the activity' under 465)?  Also, check 'amt' 6198 worksheet as well.

Did you fill out the #7207 Self Employed Health Insurance Deduction ?

No I did not include the 70k.  My understanding is that guaranteed payments do not effect basis or at risk.  

yes i filled out 7206.