Rev indiv filing 1040 has nonpassi bus activ int. What form is used to rept this int?

[henrypaulhus]

The individual purchased shares of a c-corp of which he is an employee. The buyer and seller of the shares used the installment method to report the transaction. The individual also spends 100% of his time in the business. I think the effect of purchasing the shares in an active business where the purhaser spends 100% of his time in the business makes the interest nonpasive business activity interest not investment interest which would require investment income to deduct the interest, however, the same facts to include the interest as nonpassive business exclude it from investmant interest. Where do you report the interest. Henry p

[TaxGuyBill]

There is no need to post the same question a second time. It makes it MUCH easier if you keep things on ONE post.

https://forum.thetaxbook.com/forum/discussion-forums/main-forum-tax-discussion/295370-where-do-you-record-nonpassive-bus-activity-int-where-individualfiles-form-1040

You still need to clarify the situation. WHAT interest? Your original question had asked where do you report the interest "income". Are you actually asking if (and where) the purchaser can DEDUCT the interest that he pays?

[ATSMAN]

Does your client own more than 2% of the equity?