Thanks - though that's a bit confusing as 1) the accountant who prepared the K-1 for the business said the loan cost can be amortized on 4562 and then deducted via schedule E (but unfortunately doesn't do TurboTax or know how to make it do this). And 2) TurboTax in the K-1 guide asks if we personally paid interest to acquire the business, which it then lists on Schedule E --- so it would seem consistent that the cost we personally paid to take out the loan should also be reported and amortized on Schedule E (vs. added to the business basis as you suggest). However, Turbotax does not continue the thought to ask if there were other costs associated with that loan.
