Enter unreimbursed partnership expenses (not deductible as an itemized deduction on Schedule A), directly on the Schedule K-1 form in the Additional Information section. The total amount of unreimbursed partnership expenses will flow to Schedule E, page 2. The name on Line 28 of Schedule E will be reflected as UPE (unreimbursed partnership expenses). This amount will also flow to the Schedule SE as an adjustment.
To enter this in your TaxAct return:
- From within your TaxAct return (Online or Desktop), click on the Federal tab. On smaller devices, click the menu icon in the upper left-hand corner, then select Federal
- Click Business Income to expand the category and then click Partnership income (Form 1065 Schedule K-1)
- Click Add to create a new copy of the form or Review to review a form already created
- Continue to the screen Partnership - Unreimbursed Partnership Expenses and enter the expense(s)
Please note, there is a separate worksheet to enter the business use of your home expenses.
Per IRS Publication 587 Business Use of Your Home (Including Use by Daycare Providers)
, page 22:Partners
You may be allowed to deduct unreimbursed ordinary and necessary expenses you paid on behalf of the partnership (including qualified expenses for the business use of your home) if you were required to pay these expenses under the partnership agreement.
If you are using actual expenses to figure your deduction for the business use of your home, use the Worksheet To Figure the Deduction for Business Use of Your Home, later. If you are using the simplified method to figure your deduction for the business use of your home, use the Simplified Method Worksheet, later.
Deducting unreimbursed partnership expenses. See the following forms and related instructions for information about deducting unreimbursed partnership expenses.