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

[Unregistered]

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.

[veritas]

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

[BOB W]

Right or wrong.....

.......... I expense it on the final return......... That is what I was told years ago.

[Unregistered]

.......... 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?

[Matt Sova]

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.