TaxGuyBill
Level 15

@josephfolsomcpa wrote:

Cars are titled in the husband and wife's name. Partnership doesn't reimburse.


 

If the Partnership didn't pay for it, it doesn't belong on the 1065.  How did the Partnership books balance if it claimed a deduction but didn't actually pay for it?

If the Partnership Agreement says the Partners are required to pay for those expenses, they can deduct it as UPE.