ThomasM125
Expert Alumni

Get your taxes done using TurboTax

You are allowed to deduct interest on debt that is "incurred in the trade or business activities of the partnership." If the debt does qualify for a deduction, then it would be entered on line 15 if it was not entered elsewhere on the partnership tax return. So, you need to determine first if the debt is allowable based on it being an ordinary and necessary expense of the partnership, and then determine if it would be better entered elsehere. Here is a list of interest that should be entered elsewhere on the tax return, and suggestions on where it should be entered, from the instructions for Form 1065:

 

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