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Interest on partner's equity loan

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Level 1

Where do I enter interest expense paid on a loan a partner took from the partnership to buy in?

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7 Replies 7
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Level 12

Whose tax return are you working on?

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Level 1

An individual.  I have tried putting the amount in "separately stated items" but it doesn't carry to Schedule #, page 2.

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Level 15

I would consider that to be a 1040 Investment Interest expense.  It ends up on Schedule A, not E.

 


ex-AllStar
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Level 12

@bess 

Are you trying to do this:

https://www.hhcpa.com/blogs/income-tax-accountants-cpa/interest-expense-related-to-acquisition-of-a-...

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Level 15

For the entry that @qbteachmt pointed out, you would use Screen 20 for Separately Stated Income and Deductions The last entry there is for Other nonpassive items Use Ctrl + E and enter Business Interest and the amount .

 


ex-AllStar
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Level 1

Yes, that is what should work.  But the deduction isn't showing up on Schedule E, page 2.  I'm going to call technical support and see if it's a bug in the program.

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Level 15

Part II - is the box checked for Not a passive Activity?

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ex-AllStar
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