Category: Tax Questions
Private Activity Bond Interest
Interest from private activity bonds generally is not taxable, however interest from specified private activity bonds issued after August 7. 1986 must be added to income for AMT purposes.
To display instructions for Private Activity Bond Interest in the tax program on a Form 1040 Individual Return click here.
From the Main Menu of the Tax Return (Form 1040), select:
- Income Menu
- Interest or Dividends (Sch B, 8815)
- Select New, Tax Exempt Interest, and fill in the information from the Form 1099-INT
- Private Activity Bond - Change this menu item to 'YES'
- Specify the amount of interest to carry to Form 6251 (generally the amount in box 9 of the Form 1099-INT)
To display instructions for Private Activity Bond Interest in the tax program on a Form 1065 Partnership Return click here.
From the Main Menu of the Tax Return (Form 1065), select:
- Schedule K
- Alternate Minimum Tax
- Other AMT Items
- To enter Supporting Notes sent to the IRS, select F10 on your keyboard.
Last Updated: 12/14/2017