Hello, Welcome to Just answer.
Yes, you should report the expense on 13H as investment interest expense, which would then get reported on their 1040 Sch-A as an Itemized deduction.
The investment income and the investment expense will be flowed through to each partners 1040 tax return.
from the Sch K-1
I am a CPA with experience in investment partnerships.
I agree with rramsook.
Investment expenses are deductible expenses other than interest that are directly connected with the production of investment income (IRC 163(d)(4)(C). They are limited to the amount allowed at the shareholder level.
The correct reporting on form K-1 is Line 13 code H. From there it will flow to your 1040 Schedule A.
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