Sch K-1 (Form 1065) has Guaranteed Payments to be included on pg. 2 Sch E of 1040. How can I deduct MANY expenses not reimbursed by LLC? There are many expenses such as M&E, Travel, Office Expense, Section 179, etc. Am I supposed to enter ALL these on page 2 Schedule E line 28 as a separate item?
When you are in the k-1, click the box that says "UPE."
In the green entry field above the forms column where it says "?Where Do I Enter?" type in UPE and it will take you to the Unreimbursed Partnership Expenses work sheet. AM's method will also work.
On K-1 Quick Zoom to enter unreimbursed partnership expense. Then on the worksheet this will also be used to lower self employment taxes.
This is all something new to me. I wish I had known it in the past.
Note also that the partnership agreement must specify that the partner is required to incur expenses, and won't be reimbursed.
I would like to thank all of you for your responses. I had no idea there was a worksheet. I sincerely appreciate your time.
