Unreimbursed partnership expenses

[oceanlovin'ea]

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]

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

[Gretel]

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

[oceanlovin'ea]

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