Can Form 1065 Schedule M 3 Percentage 2021-2023

Instructions and Help about Can Form 1065 Schedule M 3 Percentage

As a general rule the business expenses of one person cannot be deducted by another person under this general rule the business expenses of a partnership cannot be deducted by a partner however if the partnership agreement requires the partner to pay certain business expenses out of the partners own funds then the partner is allowed to deduct the amount as an ordinary and necessary business expense under Section 162 in Revenue Ruling 7253 a partner was required to pay the wages of an employee of the partnership in this case the partner was allowed to deduct the wages paid as an ordinary and necessary business expense these types of expenses are sometimes referred to as unreimbursed partnership expenses or upe.