Solved: How do you report active Business interest expense on a purchase of a S Corp on Schedule E?

wmartin17 · ‎12-07-2019

George4Tacks · ‎12-07-2019

Purchase of what I would assume to be stock in an S-Corp, sounds more like Investment Interest that would go on Form 4952 and hence to Schedule A.

Here's wishing you many Happy Returns

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taxiowa · ‎12-07-2019

I don't do Basic but in Proseries Professional you go to bottom of K-1 worksheet. Hit quickzoom for code D and arrow down a bit to interest expense to purchase S-Corp shares. It then automatically flows to Schedule E. I would not put it where George is supporting at all in this case.

George4Tacks · ‎12-07-2019

Purchase of what I would assume to be stock in an S-Corp, sounds more like Investment Interest that would go on Form 4952 and hence to Schedule A.

Here's wishing you many Happy Returns

sjrcpa · ‎12-07-2019

There is some rule that allows it to be deducted on Sch E page 2 where you put the S Corp income.

Ex-AllStar

indiana distress · ‎04-05-2021

I am using pro-connect and cannot find the "quickzoom for code D" that you describe.

It seems like I found everything but what I am looking for using direct entry

on the passthrough K-1 screen, line 17 other info.

In my situation the interest expense qualifies as being deductible in full as business interest (it is not investment interest).

In areas I have been able to enter the data and have it show up on the Schedule E

as non-passive loss, it also effects basis, which is not correct.

qbteachmt · ‎04-05-2021

@indiana distress

To review, then: You're not using the program for this section and you don't have the same type of interest to enter as this topic. Which means Nothing Here applies.

And this topic is from 2019.

You might want to start your own topic, ask your own question, for your specifics, and do so in the ProConnect forum. Here:

https://proconnect.intuit.com/community/proconnect-tax/discussion/03/304

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How do you report active Business interest expense on a purchase of a S Corp on Schedule E?

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