My individual client took out a personal loan to purchase a partnership interest. Is the loan interest deductible to him in any way on his 1040?
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Is he a working doctor in the practice? If yes, then UPE.
If no, then F4952
UPE on Sch E, page 2. Separate line item is *my* preference.
Is he A) a managing partner of the business or B) is it merely an investment interest?
A) UPE like was said;
B) Investment interest on Schedule A after F4952.
Thanks!
@John Arena tomorrow when they ask you to accept a response as a solution make sure you give abc credit for that... Many accountants have never seen that...
Not a managing partner, just a limited partner (LLC member).
So he borrowed money for an investment. F4952.
Yes, he took out a personal bank loan to buy into a medical practice, which is an LLC taxed as a partnership. Would that loan and the related interest expense still considered to be investment?
Is he a working doctor in the practice? If yes, then UPE.
If no, then F4952
Perhaps it needs to be clarified: "F4952"
Means "put it on Form 4952."
He is, thanks for the help.
B) Investment interest on Schedule A after Form 4952.
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