sure if you don't want the deduction. However,
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- If the partnership’s (LLC) agreement or practice requires a partner (LLC member) to pay certain partnership expenses from their own funds, with no right to reimbursement from the partnership, the partner is entitled to deduct these as trade or business expenses on their personal return. on schedule e for the partnership/LLC under unreimbursed partner expenses (UPE).
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Substantiation and Documentation:
- To claim these deductions, partners must be able to substantiate the expenses in case of an audit by the Internal Revenue Service (IRS) and that such an agreement existed
- Proper documentation and records are essential to support the deduction.
