I have followed through the K-1 entry steps. The income reported was all in Box 5 for Investment Interest Income, and for box 13 it is Code H for Investment Interest Expense. However, TurboTax is not deducting the Investment Expense. Any idea why this may not be getting deducted so that the tax due is only on the net income (difference between Investment income and investment expense)? I am materially participating in this business and there is no income in Box 1.
