wrightlj
Level 3

My client is designated as one of two General Partners in a partnership.  His 1065 K-1 for 2021, Line 13, Code H shows a large Investment Interest Expense amount.  

Can he deduct this interest on Schedule C instead of Schedule A?  Is the General Partner designation sufficient to justify that?

If deducted on Schedule C, there would be a significant tax savings over Schedule A, both federal and state.  

Thank you!

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