Interest Expense

Forum|Forum|3 years ago
January 19, 2023
1 reply
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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?

TurboTax Business Windows

Best answer by Anonymous_

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).

Anonymous_Answer

Level 15

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).

BBP2012Author

Level 2

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.

BBP2012Author

Level 2

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).

OK thanks for your help.