2021 form 1065 refund of customer deposit

[dakien]

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 

[Carl]

When did you refund the money? 2021 or 2022?

[dakien]

2021

[Critter-3]

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. 

[dakien]

thanks for your help