ljwalters Posted May 10, 2011 Report Share Posted May 10, 2011 How do you input unreimbursed expenses from a partnership? (This relates back to earlier post.) Does it need to be on the partnership return 1065? The only place I see to input on the 1040 is by adding it to the bottom of the K-1 in the 1040 return, but this does not seem right. Any help would be appreciated. Linda Quote Link to comment Share on other sites More sharing options...
NECPA in NEBRASKA Posted May 10, 2011 Report Share Posted May 10, 2011 Linda, they go on page 2 of the Schedule E on a separate line under partnership income or loss. There is a box to check to say that you are reporting UPE. Quote Link to comment Share on other sites More sharing options...
mcb39 Posted May 10, 2011 Report Share Posted May 10, 2011 Linda, they go on page 2 of the Schedule E on a separate line under partnership income or loss. There is a box to check to say that you are reporting UPE. This answer is correct. I would just like to add that nowhere do they appear on the 1065. These are strictly business expenses of the individula partners that are not paid for by the partnership. Quote Link to comment Share on other sites More sharing options...
ljwalters Posted May 10, 2011 Author Report Share Posted May 10, 2011 NECPA I can’t find the box to check or the place to put it please tell me what line # or what the line wording is. There are no “blue” (input) boxes on the sch E page 2 in ATX that I can find. Linda Quote Link to comment Share on other sites More sharing options...
Lion EA Posted May 10, 2011 Report Share Posted May 10, 2011 Also, confirm with your client that his partnership agreement requires him to pay certain expenses on behalf of the partnership and that they will not be reimbursed. Or, ask him to provide you with a copy. Quote Link to comment Share on other sites More sharing options...
ljwalters Posted May 10, 2011 Author Report Share Posted May 10, 2011 Also, confirm with your client that his partnership agreement requires him to pay certain expenses on behalf of the partnership and that they will not be reimbursed. Or, ask him to provide you with a copy. I have done that, one of the reasons it is on extension (only one). But I still cant figure out how to input the info. Linda Quote Link to comment Share on other sites More sharing options...
NECPA in NEBRASKA Posted May 10, 2011 Report Share Posted May 10, 2011 On the Input Sheet for the partnership K-1 bottom of right page, under Y other information is a line for unreimbursed partner expenses. That should check the box. Bonnie Quote Link to comment Share on other sites More sharing options...
taxxcpa Posted May 10, 2011 Report Share Posted May 10, 2011 To record UPE, enter it as if it were a separate K-1 with the same EIN as the actual K-1. Then show it as UPE. Read the instructions for Schedule E, page 2 which explains it. My software has a place on the K-1 input form to enter UPE and creates the second line with the UPE as prescribed by the Schedule E, page 2 instructions. Quote Link to comment Share on other sites More sharing options...
TAXBILLY Posted May 10, 2011 Report Share Posted May 10, 2011 Go to the input sheet for the K-1 and scroll to the very bottom. Then make two clicks in the scroll bar on the right side of the page and it will bring you to line Y. taxbilly Quote Link to comment Share on other sites More sharing options...
ljwalters Posted May 11, 2011 Author Report Share Posted May 11, 2011 Go to the input sheet for the K-1 and scroll to the very bottom. Then make two clicks in the scroll bar on the right side of the page and it will bring you to line Y. taxbilly Well thats where I had it in the first place. I just didn't know if it was right. On the k-1 in put sheet. Thanks everyone. My confusion Linda Quote Link to comment Share on other sites More sharing options...
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