- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
Client borrowed money to invest in an LLC (rental property with a triple net lease). Client is a real estate professional, but does not materially participate in this activity and so the interest on the borrowed funds should be treated as a passive item and reported on Form 8582 (and then Sched Ep2).
How do I enter the interest in Lacerte? Is there somewhere specific, similar to UPE entries? Do I just use a second K-1 input screen? Something else?
Thank you!
Best Answer Click here
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
I personally enter it as a Separately Stated Income and Deduction, under one of the two Passive Items. Don't forget to manually adjust basis to take into account the interest paid with outside funds.
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
Thank you, that makes a lot of sense!