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April 8, 2023
Question

K-1 1041 - Interest Expense

  • April 8, 2023
  • 0 replies
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Hello!

 

I finally figured out what to enter for my K-1 1041 form, but getting an error for US source interest expenses for section 14 of the K-1. I only see foreign interest expenses listed on the additional statement, but not domestic interested expenses, so I left it blank. The error I keep receiving is "U.S. source ded-int exp plus foreign interest expense allocated at beneficiary level should not be greater than total interest expense allocated at beneficiary level."

 

Any thoughts on what I have wrong? Where do I find or calculate domestic interest expenses on my K-1?

 

Thanks!

Savannah