Archives

IMPORTANT INFORMATION FOR ALL PARTNERSHIPS AND LLC’s TREATED AS PARTNERSHIPS FOR TAX

Partners often personally pay for partnership expenses that are not reimbursed by the partnership.  These expenses, referred to as UPE, can be personally deducted against partnership income/(loss) on your income tax return, BUT ONLY IF the partnership agreement allows for it.  Since these expenses can no longer be taken as a miscellaneous itemized deduction, consider adding the following to your partnership agreement if it is not already there:

Expenses Incurred on Behalf of Partnership

The partnership has always recognized that is is essential to the successful conduct of its business that,