Interest Expense

[BBP2012]

I paid interest on a small business administration loan this year. It is not flowing through to my K-1. We are far below any threshold’s for disallowing the deduction. Any reason why TurboTax Business would not allow that deduction to flow through?  And should I be over riding this somehow?

[Anonymous_ · Accepted solution]

If you are entering the interest as Investment interest expense, that could be the problem.

Try entering the interest in the Common business expenses section (as Interest expense).

[BBP2012]

Thank for that tip but can I restate my question?  I think it is the way I have it in Quickbooks.  I have it as an "Other Expense" with the tax-line mapping "Deductions-Interest Expense."  Any thoughts on that?  Anything wrong with that?  It should be below the line right?  I am an S-Corp and it is not flowing through properly to the K-1.  Thanks in advance for your thoughts.

[Anonymous_ · Accepted solution]

Frankly, I have no idea how that line item gets imported into TurboTax Business but, regardless, the interest expense should be deducted from gross income and be incorporated into the net business income figure (i.e., as part of Line 1 on your K-1 and not separately stated on your K-1).

[BBP2012]

OK thanks for your help.

[BBP2012]

Just want to follow-up to let you know that I changed the coding of interest expense to what you said and everything flows through perfectly.  Thanks for your help on this.