Form 4952 ...calculating net investment income

[Karen Lee]

OK, I am suppose to be smarter than the software but this is a subject I am not experienced in and need some help.

I have a client that is buying property and building that has a business and is operated by the client. The business is a Sub S Corp and he receives K-1 and W-2 wages from the business.

He has investment interest expense for the property and building.

He also has investment income from the K-1 for the same business.

I can use his K-1 ordinary income from 1120S in calulating his net investment income for Line 4a, Part II, Form 4952. Yes?

The MAX software is not picking up the income (from K-1) on Form 4952 Line 4a. Need to override? Missed a check box?

I read and read and read and all I do is fall asleep.

Thanks for your help

Karen

[Lee B]

According to the Tax Book, "Property held for investment includes property that produces income that is not trade or business

income, including interest income, dividend income, annuity income or royalty income." " Also, "It does not include an interest in a

passive activity ..."

[kcjenkins]

On the K-1 Input Detail, is the interest on the first "non-linked" line? If so, enter that amount on the next line down, "4952 line", and that should fix it.

[Karen Lee]

@cbslee Thanks, got it.

@kcjenkins-no interest on K-1, trying to use Ordinary income as investment income (Line 1, K-1) as investment income for the 4952. Sent you a PM.

Thanks to you both

Karen

[kcjenkins]

read and answered