I took a loan out to join a partnership (LLC,) My understanding is that i can offset interest paid on the loan verses earning distributions from the partnership. How do i properly do this? I also have an attorney fee and an origination fee, on this loan. Can i deduct these with int the K1 section as well?
You'll need to sign in or create an account to connect with an expert.
"join" a partnership. this could mean several things.
see thess threads
*
the question is do you materially participate in the LLC. if so then it's not investment interest
Investment property.
Property held for investment includes property that produces interest, dividends, annuities, or royalties not derived in the ordinary course of a trade or business. It also includes property that produces gain or loss (not derived in the ordinary course of a trade or business) from the sale or trade of property producing these types of income or held for investment (other than an interest in a passive activity). Investment property also includes an interest in a trade or business activity in which you did not materially participate (other than a passive activity).
if it's not investment interest it gts deducted as UPE - Unreimbursed partnership expense.
Mike's right; the question is whether or not you materially participate in the partnership.
Still have questions?
Make a postAsk questions and learn more about your taxes and finances.
Alex3
Level 2
adarby
Level 1
JVersaguis
Level 1
kls3806
Returning Member
k1taxes24
Returning Member
Did the information on this page answer your question?
You have clicked a link to a site outside of the TurboTax Community. By clicking "Continue", you will leave the Community and be taken to that site instead.