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Unreimbursed Partnership Expenses (UPE) not deducted for Limited Partners
I am a Limited Partner of a law firm who received K-1 this year.
When I chose Limited Partner from interview, Turbotax won't deduct any of my Unreimbursed Partnership Expenses (UPE).
I answered that I am materially participating and also checked both "I am required to pay supplemental business expense…" and "All of my investment in this activity is at risk" buttons.
However, no matter what I do in the UPE section, Turbotax won't deduct any taxes.
Turbotax deduct those expenses only if I change my partnership to General Partner.
Is this working as intended? Can Limited Partners not claim UPE at all in Turbotax?
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March 29, 2023
2:18 PM