Thank you for your response. As an employee at the LP in question, I am materially participating. “Limited partner or other LLC” is marked. All my LP income is nonpassive. In order to pay for my limited partnership offering, my employer offered a loan in which all income is directed until the loan is paid in full. This loan charges interest. It is listed on the K1 as Line 20ZZ - Partner loan interest, and the instructions say it needs to be reported as a nonpassive loss on Schedule E, Part II, Line 28, Column (i) and describe as Interest Expense. However, when I enter it under 20ZZ nothing happens, and the system will not allow me to enter it manually on Schedule E. What am I doing incorrectly? Thank you in advance.
