boat slip rental on k-1 with expenses

[nwtaxlady]

I have a new client. He has 3 boat slips over at the coast that he has in a rental pool thru the Marina. He gets a separate K-1 for each boat slip. Client has assessment fees that he pays and property taxes that he pays himself. Where do I put this expense?

Thanks for your help!

[nwtaxlady]

correct me if I am wrong...

This is where I think it should go...please correct me if I am wrong.

Put these expenses as an unreimbursed partners expenses on the Ep2 form and limited to basis.

Agree or disagree?

Thanks

[New York Enrolled Agent]

This is where I think it should go...please correct me if I am wrong.

Put these expenses as an unreimbursed partners expenses on the Ep2 form and limited to basis.

Agree or disagree?

Thanks

Best answer to whether you can take the deduction or not is "it depends".

Is there an agreement among the partners that such partnership expenses are to be paid by individual partners out of that individual partner's own funds? The general rule is the taxpayer can't deduct partnership expenses - but if there is an agreement (not sure if it must be written) then you use a separate line on Schedule E.