Irene2805
Expert Alumni

Business & farm

Since it was formerly a business interest expense (13K), enter the Code W as Nonpassive Deductions to be reported on Schedule E, page 2.

 

The entry in Box 20 code B is investment interest expense, which used to be deductible on Schedule A as Miscellaneous Itemized Deduction subject to 2% limitation.  The Tax Cuts and Jobs Act  eliminated this deduction for Tax Years 2018-2025.  However, it will flow to the state return if it is allowed there.

View solution in original post