IRS Announcement 2008-65, 2008-31 IRB 1 (Jul. 3, 2008)

(non-materially participating individual partner’s distributive share of the interest expense of partnership engaged in trade or business of trading securities is subject to investment interest limitation of I.R.C. §163(d)(1) and is a trade or business deduction that is deductible in determining AGI; accordingly, amount includible on Schedule E, Part II, Line 28, column (a)).