Partnership expenses following close of business

[David1980]

Business closes in 2016 and will file a final return for 2016. There's a few small expenses in 2017 - the preparation fees for the 1065 return for instance. Where would taxpayer deduct those expenses paid in 2017?

[ATSMAN]

How much are we talking about for tax preparation? It may be just as easier to deduct it in the 2016 return that is still open. Otherwise you are dealing with UPE issues.

[kathyc2]

Business closes in 2016 and will file a final return for 2016. There's a few small expenses in 2017 - the preparation fees for the 1065 return for instance. Where would taxpayer deduct those expenses paid in 2017?

Schedule A subject to 2% floor. If they would have pre-paid you in 2016 to prepare 2016 returns, it would be a 2016 expense. Adding it after the fact as Atsman suggests probably wouldn't fly, especially if a cash basis 1065.