Question
Partnership Basis Statement adding interest expense as an increase in basis
Proseries 1065 K-1 is adding the business interest expense as a positive (increase) on Line 4n to basis but showing the interest as a loss carryover item on Line 15q. The current year ordinary income is positive after the interest deduction. The client is a small business taxpayer and not subject to 163(j). This doesn't seem correct but it affects the taxable gain on excess distributions. I saw a post for an earlier year with this issue in Lacerte but it is no longer viewable. Has it still not been corrected?
