Hello Forum, I have another question on t his topic.
I paid some partnership expenses in late 2020. I will be reimbursed for these shortly (2021). These expenses were for startup costs (legal fees) and a computer.
2020 will be the first tax return for the partnership..
I am using cash basis accounting.
For t-tax business (and my books) I just created a "liability" account for the amount owed. When I report this liability in turbotax, it creates a entry of this amount for "recourse liabilities" on the General Partner K1 section K.
I am not sure of the significance of this and if it is right... I thought that partners liability entry was used when partners contributed property that came with debt/liabilities etc.
