No. Box 13 reports Investment Interest Expense for the partnership. Box 20 Code B is for other Investment Expenses that flow to the partners but do not affect partnership income.
You can use Special Allocations to report this flow-through expense on the individual Schedules K-1.
- First, confirm that "Makes Special Allocations" is listed as Yes under Business Info >> About Your Business.
- Go to Partner/Member Information and click Done at the bottom of the Member Summary page.
- Continue to the page "How to Enter Special Allocations" and click "See Demo" at the bottom.
- Follow the first example for Special Allocation by Amount to enter (1) the total amount to allocate on Line 20b and an "A" in the small box on Form 1065 p4 Schedule K and (2) the specific Box 20b amounts on the Schedule K-1 worksheet for each partner under Special Allocations By Amount Line A. You will need to calculate the allocations yourself.
- To confirm the allocations, open Sch K Reconcile (Lines 1 thru 20b). There should be no form errors and the total for Line 20b should match the amount reported on the K-1 from the pass-through entity.
- The result is shown on each partner's Schedule K-1 Line 20 Code B.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
