Sorry for multiple replies. Here's where I am stuck -
1. Pub 529 does say that "Indirect deductions of pass-through entities" are disallowed
2. TurboTax has info that contradicts this in the Investment Expenses screen. It specifically provides the below guidance -
These investment expenses must be expenses you were allowed to take against other investment income. These are not common. Some examples are:
- Expenses passed through to you on a schedule K-1
- Depreciation or depletion allowed on assets that produce investment income (e.g. oil depletion)
So it is specifically guiding that certain pass-through expenses may be deducted.
Is there a contradiction because nobody is bothering to keep the TurboTax software up to date any longer as the quality continues to deteriorate? Or is it because there are exceptions, and perhaps my situation is an exception?
I think Intuit is doing an extremely poor job maintaining very basic things about TurboTax. It's too bad, because this once was great software, but I may be submitting a request for a refund due to simply too many errors in the product.
