I have a client who is a 50% partner in a partership. I have their K-1. Is there any place to take their unreimbursed work expenses from their work in the partnership besides on schedule a subject to the 2% limitiation?
Thank you for using Just Answer.
Unreimbursed partnership expenses can be deducted on schedule E page 2 as a loss and therefore offset some of the income from the K-1. Enter the original K-1 on line 28A and then on line 28B, enter the name of the partnership with a notation of (UPE) and enter it as if it were another K-1 with a loss. You will also need to check the "yes" box on line 27.
17 years experience in business and individual taxation specializing in small business and farming