2021 form 1065 refund of customer deposit

Finishing up my 2021 1065 2 member llc

We refunded a client's $17,500 deposit where would I enter this

Thanks in advance for any help or guidance

552

Level 15

Sep 9, 2022 3:41:57 PM

When did you refund the money? 2021 or 2022?

Returning Member

Sep 9, 2022 3:56:58 PM

2021

Level 15

Sep 9, 2022 4:55:45 PM

If you did not include it in the income you have nothing to expense... you just had less income to report.

If you did add the deposit into income and refunded in 2021 then it goes on line 1B of the form 1065.

Returning Member

Sep 9, 2022 6:34:14 PM

thanks for your help