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Business & farm
For income tax purposes, firm A does not exist. It is reported as if YOU receive the K-1.
If the K-1 is from a Partnership (1065) AND the Partnership Agreement requires you to pay for those business expenses, there is a spot for entering "Unreimbursed Partnership Expenses" (UPE) in the K-1 section.
May 15, 2021
8:03 AM