Drake Tax - 1040 - K1P Box 13 Interest Expense
Article #: 18342
Last Updated: October 21, 2024
Note This article comprises former KB articles 17714 and 18342. It is herein referred to as KB 18342
Generally, code AC, Interest expense allocated to debt-financed distributions, flows to the Wks K1P Detail Adj Basis, line 10k, then to Schedule E, page 2, line 28. The following items may impact whether the amount is allowed or limited:
-
Activity type,
-
Current year K-1 income or loss,
-
Partner's basis.
If the amount is not showing on Schedule E, page 2 as expected, review the Wks K1P Detail Adj Basis and Form 8582 (if applicable). See the Partner’s Instructions for Schedule K-1 (Form 1065) for additional information.
Drake Tax 2022 and prior - Code WA
Code AC was code WA in 2022 and prior. Generally, code WA, Interest expense allocated to debt-financed distributions, flows to the Wks K1P Detail Adj Basis, line 10k, then to Schedule E, page 2, line 28. The following items may impact whether the amount is allowed or limited:
-
Activity type,
-
Current year K-1 income or loss,
-
Partner's basis.
If the amount is not showing on Schedule E, page 2 as expected, review the Wks K1P Detail Adj Basis and Form 8582 (if applicable).