Invest in hedge fund trading 1256 contracts. Got K1 with investment expenses. Fund tax auditor says fee can be deducted in schedule E page 2. How do I enter this?

[proaditya]

Quoting a statement from the fund tax professional. Please note that trader expenses are deductible on schedule E page 2. A fund that turns over its portfolio a lot in one calendar year or is trading on most days during the year may be recognized as a trader fund, which allows for the expenses to be considered deductible. How do I do this?

[PatriciaV]

How were the investment expenses reported on Schedule K-1? The instructions for that box and code should allow you to report these expenses on Schedule E page 2.

See IRS Instructions for Schedule K-1 (Form 1065).

[proaditya]

Hello, the instructions say to report it as non passive expense that flows into schedule E.

However, if I choose that, turbo tax doesn't seem to flow it down to schedule E (for whatever reason) (seems like a TT bug?).