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Ptship Final Return - How to account for final Tax Prep Fees

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    Ptship Final Return - How to account for final Tax Prep Fees

    I have a cash basis partnership that closed down in 2005. Do we have to file a 2006 return to account for the payment of my fees? That would be the only transaction in 2006 other than the final distributions to the partners.

    #2
    I would deduct in the year paid as an unreimbursed partnership expense on sch e.

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      #3
      Right or wrong.....

      .......... I expense it on the final return......... That is what I was told years ago.
      This post is for discussion purposes only and should be verified with other sources before actual use.

      Many times I post additional info on the post, Click on "message board" for updated content.

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        #4
        Originally posted by BOB W
        .......... I expense it on the final return......... That is what I was told years ago.
        That is what I have always done too... Just curious what others do. Anyone else?

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          #5
          Technically

          You are to never accrue accounting fees, even if you are an accrual basis taxpayer. That said, in the final year we, and many others I know, have always accrued the fee. What I try to do if I know someone is going out of business is I have them pay me an estimated fee before 12/31 so I got my money up front and it is legit.
          I would put a favorite quote in here, but it would get me banned from the board.

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