I have two issues regarding my K-1 and TT.
1) We used a loan to acquire interest in a partnership. According to the IRS, since this is a passive activity, the interest expense should be included on Form 8582, but on TT (self-employed) online, I'm not able to use forms. Where should this be reported in the K-1 interview?
In my case, this K-1 reported rental real estate loss in Box 2 (and no activity in 1 or 3), so my interest expense should be reported on Schedule E. When I go to Schedule E on TT, I'm not able to add any expenses apart from my rental property (unrelated to K-1 partnership). When I go to the K-1 part of TT, I don't see a place to enter an expense like this anywhere, either.
2) This is the 2nd year that this K-1 will be reported in TT. When I went through the interview, it didn't ask me any questions about my capital account or liability share, which are needed to show my adjusted basis. When I added a fake K-1 to see what differences there are in the program, it DID ask me to record these. Are these numbers reported on my return anywhere? Should I just go along with my "original" k-1 report from TT (I'm scared if I delete it, I might screw up something with the importation?), or should I delete it and reenter it so that I'm prompted to enter in the liability share and capital account?
I've been pulling out my hair trying to figure this out, so I really appreciate if anyone can help me out on this. Thank you!!
