Hi- I'm working on the 2023 version of "Worksheet for Adjusting the Basis of a Partner's Interest in the Partnership" and having some issues. The software is pulling in my real estate rental income (line 4b) EXCLUDING the mortgage interest reduction. Per the IRS K-1 instructions, it seems like this number should tie to my K-1/I saw a prior year return where it ties? In addition to that, the software wasn't populating the same mortgage interest income in the business interest income/BIE line (line 4n. The IRS instructions do confirm it should come from K1 line 20 Code N, which I do see coming through my K-1. I was able to see the BIE override to get that pulled in for line 4n, but the fact that its not autopopulating here makes me wonder if I entered it incorrectly... Also, no idea how to make the rental income include interest income?

I entered the mortgage income through the following path: Inputs > Schedule K > Rental Real Estate > "interest expense" in the 'Mortgage - banks, etc. (Form 1098)' section. I've tried playing around with the check boxes and stuff to try to get the rental income to pull in including it, but am I wrong for thinking rental income should tie to the K-1? I did notice the carryover input screen says when you enter rental income, exclude BIE. But are we really supposed to remove the interest income reduction, and then increase basis AGAIN by adding it back? That doesn't make sense conceptually to me... HELPPP 😞