TaxmannEA Posted March 27, 2021 Report Share Posted March 27, 2021 I've just been given a partnership return for a new business that started in 2020. Because of Covid, they were unable to do any business in 2020. They have expenses such as rent and utilities, but no revenue. They do have revenue in 2021. Do i need to file a return for 2020, or should I write off the expenses as start-up costs and amortize starting in 2021 ? I've not encountered this situation before. Quote Link to comment Share on other sites More sharing options...
Lynn EA USTCP in Louisiana Posted March 27, 2021 Report Share Posted March 27, 2021 Despite no income, there are expenses. Yes, a partnership return should be filed for calendar year 2020. 4 Quote Link to comment Share on other sites More sharing options...
TaxmannEA Posted March 27, 2021 Author Report Share Posted March 27, 2021 Thanks Lynn. I had a mental block on this. Quote Link to comment Share on other sites More sharing options...
Lee B Posted March 27, 2021 Report Share Posted March 27, 2021 While I agree that a PTS Return should be filed, depending on the circumstances, the expenses could be start up expenses or be deductible expenses. 1 Quote Link to comment Share on other sites More sharing options...
Lion EA Posted March 27, 2021 Report Share Posted March 27, 2021 Was the partnership actually open for biz, available to do what it's in biz to do? Or, still getting it's location ready or certificates applied for or other pre-opening requirements? 2 Quote Link to comment Share on other sites More sharing options...
DANRVAN Posted March 27, 2021 Report Share Posted March 27, 2021 4 hours ago, Lynn EA USTCP in Louisiana said: Despite no income, there are expenses. Yes, a partnership return should be filed for calendar year 2020 And NOL carry forward from operating expenses from the day business opened. Quote Link to comment Share on other sites More sharing options...
TaxmannEA Posted March 29, 2021 Author Report Share Posted March 29, 2021 The business was open and available in March. It had to close down due to the Covid shutdowns. They deal with parties and other gatherings which did not happen in 2020. They are doing some business this year. Quote Link to comment Share on other sites More sharing options...
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