Does my client's partnership, which owns an interest in a second partnership, eliminate the SE income/non-farm income from the partnership it owns?

When I input the other partnership's K-1, the SE Income and Non-farm income from it don't 'roll through' to my client's K-1.  The numbers get eliminated  on the SE income tax worksheet on my client's partnership.  Is this correct or a glich in Proseries sftwre? 

My client owns 3.36% of second partnership and provides w-2 services.  The K-1 from this p'ship now runs through his newly formed p'ship owned 50:50 by he and his wife, which in turn renders a K-1 to them personally.  However, the sftwre eliminates the SE earnings and non-farm income from the k-1 from the second p'ship.

Answer

Does your client materially participate in the second partnership?

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