WashCPA, 

Just tried your method of putting negative one in the basis schedule for the interest expense. it works except it increases the basis by $1.00. It leaves the interest expense off line 4b though which is good. 

My way works except the interest expense still shows on line 4b.

Either way it's not a big deal. You could always deduct the $1.00 if you want basis exact.

That line in the basis worksheet to input Business interest expense included in current year income or gain is new and there for a reason. My partnership has a loss.

They just need to fix this. In the meantime I may have to force the basis schedule. I looked and i don't see that it creates any problems.

That's all I got! Good luck.