Schedule E- Loan Under Code Section 133

[Lori Foresz]

Item 2A of the Schedule E asks if the ESOP has outanding securities acquisition loan under Code Section 133.

Is this for old loans were the lender could deduct 50% of the interest paid?

Our ESOP does have a note out to the prior owner who did 1042 exhange but I want to confirm we still answer this question no on Schedul E.

the loan is new and I understand the 133 exemption no longer applies but is grandfathered for old loans.

Thanks!!

[A Shot in the Dark]

Lori:

You are correct.