T/P is paying some old accounting fees from a dissolved partnership. Where to deduct on the T/p personal tax return, Sched A subject to 2% misc??
Sandy
Sandy
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Expenses paid by partner
When was it dissolved? In '05? Actually, I don't know if it makes any difference if the partnership is dead or alive, but I used to have this problem all the time. The partners would pay company bills individually rather than through the company account and I didn't know where to put it. Then I went to a seminar and they said:
Put it (the money figure) on the back of Schedule E in Part II under "Nonpassive loss from Schedule K-1" on line A (that's the block in the middle of the second paragraph of Part II). I know that doesn't exactly make sense because it did not come from the K-1, but that's what they said to do. Then type in "XXX Partnership," etc. on the description line above in part 28 on line A. Directly below it on line B, type "Expenses for XXX Partnership."
I've done it like that and had no kickback from IRS. Never did one for a dissolved 1065 though -
Sandy, I would take deductions on Sch.E pg.2. But before you do that make sure partnership agreement allows for this.Comment
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Partnership dissovled in 2003
Partnership is dissovled, t/p which was 55% partner is paying off some old bills from personal funds which were never deducted on the partnership return.
So schedule E page 2 makes sense, they would actually receive a little higher deduction that way.
Thanks,
SandyComment
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I have put
this kind of expense on a Sch D if it is in the year following the event. I've labeled it "Closed Company Fees".JGComment
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Already have a c/o loss on Sched D
If Sched E is the appropriate place, I think I would rather have it on page 2 of Sched E so they can benefit from the write off, we already have a loss c/o due to a failed installment sale and not being paid off.
SandyComment
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The longer I do
this stuff, the more I think that we can pretty much put this stuff almost anywhere--wherever we want to and it wouldn't make a ripple.
Thinking about it, I don't believe the fact it's '03 stuff will bother anything. Basically, I don't think anybody's giving it a second glance unless they're checking for an information document that's supposed to be on there and isn't.
I've got a lady client right now that had a large apartment building in a crime-infested neighborhood in a large nearby town. She went broke two years ago and sold it to the bank at a fire-sale price. She is now paying and will be paying off the note for a couple of more years. She doesn't have any other rent houses, so, after the first year, I ended up with interest expense on the thing and no place to put it. I asked a former IRS seminar guy and he said to put it on E. I asked him if he didn't think it would look "funny" (all expense--no income) and he said "Yeah, a little, but it's a legitimate deduction." I've showed an expense and no income on that schedule for three years now. No repercussions yet.
It just seems to me that we dither around fussing over this and that, turning these things ever' which way but loose and it never amounts to anything. I don't mean there's anything wrong with your being concerned about it--I'm still concerned and worried about mine because that's just the way we're trained-up to be--but I just no longer feel that anybody is paying much attention to this kind of stuff at all.
I'd give a lot to be able to spend a day in the room where they take these things apart and just see what kind of special (or any) attention is paid to what.Comment
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As a colleague of mine likes to say, "It's an art, not a science."Originally posted by Black BartComment
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Nor, is it brain surgery!Originally posted by rosieeaSueBabyComment
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