Business & farm

Yes.  For a partner to be permitted to deduct unreimbursed partnership expenses on his or her personal return both of the following elements of this exception must be met: 

(1) the partnership agreement must require the partner to pay such expenses without having a right to be reimbursed; and 

(2) the claimed expenses must be able to be substantiated in the case of an audit by the Internal Revenue Service.

After you indicate that you are required to pay expenses and all your activity is 'at-risk', you will proceed to enter your expenses.   Go through the entire section before checking Schedule E.   There is a question Did you receive any reimbursement? that has to be answered.    Proceed through the section until you get back to the summary page.

To verify the expenses are being included in the Self-Employment tax calculation, view the Schedule E - Suppl Exp - P page in your tax return.   You should see the total unreimbursed expenses on Line 18.   Underneath that, you should see where those expenses are subtracted from the K-1 net earnings.   The net amount is on Line 22 and is used to calculate your self-employment tax on Schedule SE.