Unreimbursed partnership expenses

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  • oceanlovin'ea
    Senior Member
    • Jun 2005
    • 2682

    #1

    Unreimbursed partnership expenses

    Client formed partnership with friend in another state. (This will be fun). They both have unreimbursed partnership expenses. My client purchased a computer and printer to use in the partnership but the partnership does not own the equipment.
    When I deduct for the UPE, should I depreciate the equipment and take a portion each year. This would be better for the client as income is very low this year.

    Linda
  • dsi
    Senior Member
    • Dec 2005
    • 705

    #2
    You can do that. Set it up as a depreciable asset and code it so that it goes to the Sche, pg 2.
    Dave, EA

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    • Gretel
      Senior Member
      • Jun 2005
      • 4008

      #3
      I agree. Just as a reminder, that Partnership Agreement needs to state this.

      Comment

      • oceanlovin'ea
        Senior Member
        • Jun 2005
        • 2682

        #4
        yes

        Yes, I did let them know that the unreimbursed expenses they each pay must be stated in the partnership agreement that these are their responsibility. I think they had done that before I told them.

        Just wasn't sure about the depreciation.

        Thanks.

        Linda

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