As the description says, portfolio deductions are no longer deductible on individual returns. For partners other than individuals, amounts that are clearly and directly allocable to portfolio income (other than investment interest expense and section 212 expenses from a REMIC) can be deducted on those partners’ income tax returns. (IRS Instructions for Form 1065)
To be accurate, you should omit this code and amount from the K-1 on your 1040 return.
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