Investment Interest Expense from K1

Forum|Forum|9 months ago
August 24, 2025
1 reply
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I got investment interest expense from on one PTP K1(line 13 H) where I am passive investor and limited partner.

It is showing in TT interview mode under Retirement and Investments and then under Investment Interest Expense. I will be taking standard deduction and no Sch A for me this year.

Q: Where does this expense deduction go and which form? Sch A? No Sch. A so no deduction?

I will be filing Sch C as Trader.

Q: Can this expense be listed under Sch C expenses?

Thanks in Advance!

sam992116Author

Level 6

@Mike9241

Where does number listed on 13 H (investment interest expense) goes on 1040?

Does one has to manually add to Sch A (if choosing Sch A) or it goes somewhere on sch E?

What are options for someone taking standard deduction?

Mike9241

Level 15

if you are taking the standard deduction the investment interest expense deduction is lost. normally it would go to form 4952 and then to schedule A but with the SD there is no schedule A.

sam992116Author

Level 6

@Mike9241 Thank you for your input and help.

Can one add this expense at Sch C or probably not?

This expense is coming from K1- entity where I am passive investor and Sch C is from my business of trading where I am active. Not sure if one can add this expense on Sch C ?