topic Unable to enter business interest expense related to acquisition of partnership. According to IRS this should have separate line in Part II of Schedule E in Business & farm

Unable to enter business interest expense related to acquisition of partnership. According to IRS this should have separate line in Part II of Schedule E

susanjb — Sun, 06 Oct 2019 01:22:04 GMT

Re: Unable to enter business interest expense related to acquisition of partnership. According to IRS this should have separate line in Part II of Schedule E

Anonymous_ — Sun, 06 Oct 2019 15:47:51 GMT

According to the IRS, it should be entered as "business interest" on Line 28.

See https://www.irs.gov/instructions/i1040se#idm140630719968528

However, the only apparent method to get that figure on that line in TurboTax Step-by-Step (the interview), is to enter the figure as partnership expenses (see screenshot below) in the K-1 entry section.

The entry will appear on Schedule E as "UPE" (unreimbursed partner expenses) which is probably not technically correct. You can override the description to read "business expenses" but TurboTax will flag that override and you could be forced to print and mail the return.

Re: Unable to enter business interest expense related to acquisition of partnership. According to IRS this should have separate line in Part II of Schedule E

susanjb71 — Sun, 13 Oct 2019 22:12:44 GMT

Thank you,

I checked that box, and this brought me to a page that actually lists business interest paid to acquire partnership.