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How do I report nominee interest income received and paid to a third party on a partnership return?

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Level 1
last updated ‎July 19, 2020 3:55 PM
 
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3 Replies 3
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Level 15
last updated ‎July 19, 2020 3:55 PM

Use Schedule K - Interest Income - Investment Expense.


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Level 14
last updated ‎July 19, 2020 3:55 PM

I'm leery of the investment expense route. If partners are individuals they cannot deduct investment expenses.


ex-AllStar
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Level 1
Level 1
last updated ‎July 19, 2020 3:55 PM

If the interest had been received in the ordinary course, is there anything wrong with a zeroed-out entry on Line 7 and an attached statement delineating the total interest received and actual recipient's share (assuming the latter is the total received)?