I'm invested in crowdsourced real estate through Fundrise and was issued a K-1. Box 13 (Other deductions), code K, indicates an excess business interest expense of exactly $1. My tax software says that because I have excess business interest from a partnership, I am unable to e-file the return and must fill out Form 8990 (which I don't believe I have enough information to fill out as a passive investor). Is there any way I can avoid reporting that $1 so I can e-file?

Further information on the form: Box 1: -12 Box 2: -3 Box 13 Code K: 1 Box 13 Code W: 1 The other boxes 3-19 are blank.

Try removing the $1 and see if it will let you efile. If so, let the $1 go and efile! It’s not worth your time to try and solve that issue.

I'd love to do that, but are there any legal concerns? The IRS website seems to say that I HAVE to submit Form 8990 if I have an excess business interest expense.

No legal concerns over $1. No one is going to come after you about it. Take it off and get it filed. You’ll be fine.