efile with an overridden field

Forum|Forum|2 years ago
March 7, 2024
2 replies
26 views

I had to override to make an entry on Schedule E page 2 line 28 - for interest expense on a loan to purchase shares in an LLC. (I made the entry for "interest expense - xxxx, LLC" in line 28 column (a), and entered the amount in column (g) as directed by the IRS.

Calculations and forms are fine; however, since there is an override, turbotax goes into a "check this" loop JUST BEFORE SUBMITTING ELECTRONICALLY - and after taking my money for the State Efile. The only answer I see is to mail the return. Wow (frustrating). What am I missing? Or how do I get a refund for the extra $ that intuit just took for the state efile?

DMarkM1

Level 15

There typically is a place to make entries that will accomplish the correct reporting of your income/deductions without overrides. The entries you are making come from a K-1. So you will need to post more clarifying information to help us help you make the proper entries.

There would be a worksheet for the K-1 you may have entered and box 13 has a code H for interest expense. However, that may not be the proper place as that amount typically should have already been recorded on the K-1.

Are you saying you received a K-1 Partnership/S-Corp that took out a loan to purchase shares in an LLC and has interest expense on that loan?

and

That expense was not on the K-1?

Was in another box for example 20 and you are looking for a place to put it?

Are you saying you took out a loan to purchase shares in an LLC and there is an interest expense related to your investment?

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DD2VentureAuthor

Level 2

Thanks for the direction - and I apologize for the frustration in my earlier post. After a little more work and research, I was able to drill into a supporting worksheet to enter the information; I canceled the override I made earlier (on Schedule E Part II line 28) and resolved the error which allowed me to submit the efile.

Here are a few details: In my situation, I purchased additional shares in an LLC from another member exiting the business. I purchased those shares on contract (yes, took out a personal loan), resulting in interest expense which IRS Publication 535 addresses. In turbotax, "Schedule K-1 Partnership Additional Information" has a section at the end titled "Outside Expenses" and a place for "Interest Paid" for interest expense from debt used to finance acquisition of partnership interest. That entry was the key. Again - Thanks!