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K-1 Interest expense allocated to debt-financed distributions

drbdrb
Level 3

Limited partner client fully invested debt-financed distributions and can thus deduct associated interest expense (K-1 box 13, code AC) as investment interest on Sch. A (via Form 4952, if required). I'm probably missing something, but when entering the K-1 information including the noted box 13 interest, it doesn't flow through to the F4952 or directly to the Sch. A. Does this need to be entered manually on the Schedule A (or Form 4952, if required)?  Thank you!

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drbdrb
Level 3

After additional legwork, I'll respond to my own question. As I've noted elsewhere, I transitioned from Lacerte to ProSeries Basic this year. For K-1 Line 13AC, Lacerte provides in part, "If the proceeds were used in an investment activity, enter the amount in Investment Interest Expense in the Code 13H section above, to carry to Form 4952." This works perfectly fine in ProSeries as well.