Question
EBIE adjustment to basis
Have a partnership K-1. Partner’s interest is .2710839%. This is the first year. Partner has no beginning basis. K-1 is showing ($27,139) ordinary loss, interest income of $17,101, dividends of $274, and STCG of $2,149. Line 13 K shows $42,665 excess business interest. Proseries is not reducing the basis of $19,524 (created from above income) before calculating the allowable loss. The full EBIE is being carried forward. Is there any legal authority that allows this? This is all phantom income for the partner, so I am trying to get as much of the loss deductible as possible.
