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Wallstreet Esq.
Wallstreet Esq., Tax Attorney
Category: Tax
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Experience:  10 years experience
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Partner's K-1 form has "section 1.163-8T interest expense".

Customer Question

Partner's K-1 form has "section 1.163-8T interest expense". I believe the debt related to that interest was not used to finance partnership activities; the debt was used to finance distributions of cash or other assets to the partner(s). Is it the case where: 1) the amount of interest was paid, but not used as an operating deduction for the partnership; and 2) the partner would trace the interest deductibility to his use of the proceeds? Also, the K-1 shows "section 754 depreciation". Is that depreciation a deduction to reduce further the partner's income which is shown in boxes 1,2 and 3 of the K-1
Submitted: 1 year ago.
Category: Tax
Expert:  PDtax replied 1 year ago.

Hi from Just Answer. I'm PDtax. I can assist, but I think the best way to assist is to look at the actual K-1 and advise.

I will post an Offer for a price adjustment for the extra time. Accept, and a private link is set up that can be used to send me a copy of the K-1.


Customer: replied 1 year ago.

No thanks