Welcome back! Ask questions, get answers, and join our large community of tax professionals.
cancel
Showing results for 
Search instead for 
Did you mean: 

Should a partnership that started in 2019 file a tax return if it did not make any income, but have some expenses?

Highlighted
 
Labels (1)
0 Cheers
5 Replies 5
Highlighted
Level 15

Yes... especially if the IRS is expecting a return (based on the letter received after applying for the FEIN).

AND, those expenses may or may not be immediately deductible.  Check into the need to capitalized as start-up costs, depending on the fact pattern.

 

Former Chump... umm.... AllStar.
If a post answers your question, click on *Accept as solution* for future searches
Highlighted

Thank you for your answer.  What will happen whit the losses on his personal return? I know it flows to the Sch E, but will be able to deduct something. The taxpayer does not have other passive income.

 

 

0 Cheers
Highlighted
Level 15

1) IF the expenses are deductible at the partnership level, the loss will show on the K-1.

2) The K-1 amounts show on F 1040, Sch E, page 2 IF they are deductible. 

You imply the K-1 is a passive investment; deductibility of passive losses on F 1040 is dependent on many factors.

Is this your first F 1065, and the first time you've dealt with a K-1 on a F 1040?

Former Chump... umm.... AllStar.
If a post answers your question, click on *Accept as solution* for future searches
0 Cheers
Highlighted

Yes, it is. Any recommendation ? 

Thanks, 

 

0 Cheers
Highlighted
Level 15

Find a local mentor, or pass on doing the returns until you have time to do some CPE.

Learning to do taxes via an on-line forum, from strangers,  isn't feasible.

Former Chump... umm.... AllStar.
If a post answers your question, click on *Accept as solution* for future searches