I invested $500,000 in a hedge fun in 2024 for which I received a K-1. The current year net income (loss) was 81,732 and Ending Capital Account was 581,732.
Total Income is as follows:
Total Deductions were:
When I put this into turbotax, I am taxed on the full $88,723 and do not get any of the deductions. I’ve printed out my return and the $6,991 does not show up anywhere, I just have the $86,978 reported on Form 8949, Part II, the $1,721 and $24 of interest/dividends reported on Schedule B.
Why I am not taxed on the “NET INCOME (LOSS) PER SCHEDULE K-1” of $81,732 (which is the $88,723 less $6,991 in deductions)? Where can I input this into TurboTax to reduce my income from this partnership?
You might wish to review Form 4952 to see if your investment interest expense (Box 13 Code H) was an allowed deduction.
Also, where did you report Box 13 Code ZZ? if you reported this as a miscellaneous itemized deduction, please review Schedule A to confirm how that amount was used on your return. If you entered Code ZZ as a nonpassive deduction, please review Schedule E page 2 Line 18.