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jftaxusa
Returning Member

K-1 (1065) Box 13 code H and AE

If I take the standard deduction, does investment interest expense increase my basis because I was unable to take the deduction?  Also, under code AE the K-1 detail shows "Management Fees" and "Portfolio Deductions", which I don't think are deductible.  Because they are not deductible, do they increase my basis?

 

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1 Reply
maglib
Level 11

K-1 (1065) Box 13 code H and AE

@jftaxusa If there were trading fees associated to a particular stock or investment purchase they increase basis only.  Routine investment costs and financing will not change basis but, may help reduce federal Net Investment Income Taxes and may help reduce taxable income in some states that still allow investment ductions. The disallowed investment interest expense flows to Form 4952 and can be carried forward.

 

 

 

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