Interest charged on late contributions to partnership

Hi,

We have an investor client that invested in some underlying funds (partnerships) with other investors. The funds report passive income and portfolio income. Our client received some interest income outside of a fund because other investors contributed late to the partnership. Our client also had to pay some interest due to late contributions.

For our client, would this be considered investment interest income and expense?

Thanks,

Can you please explain yourself here.

Are you saying this: You have an individual client. He, and some friends, personally invested in a Partnership (P) by pooling their money. The investment made to P is in the name of your client only, even though it’s really pooled funds.

Is that what you’re saying?

Or, are you saying that individual client put money into P1 (a partnership). Friends also put money into P1. And then P1 made a single investment into P2 (another partnership).

Can you please explain yourself here.

Are you saying this: You have an individual client. He, and some friends, personally invested in a Partnership (P) by pooling their money. The investment made to P is in the name of your client only, even though it’s really pooled funds.

Is that what you’re saying?

Or, are you saying that individual client put money into P1 (a partnership). Friends also put money into P1. And then P1 made a single investment into P2 (another partnership).

Sorry, it's a fund of funds that a client invested in. The other partners were late with their contributions to the partnership for their capital call and had to pay interest to our client. Is this generally interest income to our client? I would think so.