The amount from Form 1065 Schedule K-1 Box 13 Code H is used by the program in the calculation of Form 4952 (Investment Interest Expense Deduction). The amount is transferred to line 1 of Form 4952. The program will transfer the result to Schedule A.
You can report this instead on Schedule E page 2 using Forms Mode.
- In the step-by-step interview, do not use Box 13 Code H. Instead, use Code ZZ.
- Go to Forms and open K-1 Partner for this investment.
- Scroll down to Line 13 and click the QuickZoom button for codes R and W to ZZ.
- Scroll down on the Additional Information form to Line 7a and enter the amount.
- Open Form 4952, Schedule A, and Schedule E pg 2 to confirm the result as follows.
This entry will adjust the investment interest expense for Form 4952 / Schedule A and instead report the expense on Schedule E page 2 on Line 28 column (i) Nonpassive Income/Loss - Loss K-1.
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