Schedule E, line 28, prints Unreimbursed Partner Expenses (UPE)
Enter UPE from nonpassive activities in
Unreimbursed Partner Expenses
on the K1-6 screen in the K1 1065, 1120 S folder. Per the Schedule E Instructions, a taxpayer can deduct unreimbursed ordinary and necessary partnership expenses paid on behalf of the partnership on Schedule E if the taxpayer needed to pay these expenses under the partnership agreement (except amounts deductible only as itemized deductions; enter these on Schedule A).
Enter unreimbursed partnership expenses from nonpassive activities on a separate line in Column (h) of Line 28. Don't combine these expenses with, or net them against, any other amount from the partnership.
If the expenses are from a passive activity and the taxpayer doesn't need to file Form 8582, enter the expenses related to a passive activity on a separate line in
Column (f)
of Line 28
. Don't combine these expenses with, or net them against, any other amounts from the partnership.Enter
UPE
in Column (a)
of the same line.If the K1 is from an S Corporation, the amount may come from the asset tab. This is an incorrect data entry. Enter the
K1 shareholder asset
as an itemized deduction.
