Form 1065 - Brokerage Expenses

[kgraghu]

I am using Turbo Tax Business, where to enter the following expenses from Brokerage firm? Thanks!

Interest paid to Brokerage.

Other Fees

Change in Accrued Interest

[RobertB4444]

The interest goes under 'Common Business Expenses' as an interest expense.

The broker fees will go under 'Common Business Expenses' as a legal and professional fee.

Change in accrued interest only matters if you file with an accrual method.  So you can ignore that.

@kgraghu 

[kgraghu]

Thank you!

Yes,  I am using Accural method.  

Last year I had negative Interest Accruals and CPA added that with other expenses and shown in 13d of Sch K. This year it is positive, how to handle it? Thanks!

[RobertB4444 · Accepted solution]

Positive change in accrued interest is interest income to you if you are using the accrual method.  You will enter it into the income section as interest income.

@kgraghu 

[kgraghu]

Thank you! If I enter this Interest accrual under Investment Income/Interest Income, it will not match with 1099B. Will it flag as problem when IRS process it? or Should I put under Other Income with description "Interest Accruals"?

[DaveF1006 · Accepted solution]

 You can put this as other income 'interest accruals" so this doesn't conflict with the information on your 1099B.

@kgraghu