Generally, the partnership pays the business expenses incurred by a partner, however the partnership agreement may specify that the partner is to pay "ordinary and necessary" expenses. In that case, the partner may deduct them on Schedule E.
Note: Don't enter unreimbursed partnership expenses in Schedule E unless the partnership agreement specifies the partner is to pay them.
To enter Unreimbursed Partner Expenses in TaxSlayer ProWeb;
- Create a second K-1
- Partnership's Name - Enter "UPE - Name of Partnership"
- Enter the same EIN
- Ordinary income - Enter Unreimbursed Partner expenses as a loss
- Self-employment income - Enter Unreimbursed Partner expenses as a loss
- 199A income -Enter Unreimbursed Partner expenses as a loss
Due to software limitations, these steps will not check the box on line 27 of the Schedule E. A preparers note must be included to claim the UPE. To include the preparer note, from the main menu of the tax return select;
- Federal Section
- Miscellaneous Forms
- Explanations
- Preparer Notes
Additional Information:
