I have a K-1 from a S corp that is engaged in the business of trading financial instruments or commodities. The K-1 indicate -5,000 in ordinary business income which is various expenses including interest expense to support trading. It reports 10,000 in net short-term capital gains.
When it comes to schedule 8960. It is pulling in the 10,000 in short-term capital gains. On line 4a it pulls in -5000 of ordinary business income but it is automatically backed out in 4b. Shouldn't I be able to net down the trading losses for NIIT purposes by the investment expense?
Is there some way I can manually edit the form in TT online?
If not, what do I need to change in the input of the K-1 to make it not automatically backed out?
