Schedule E and Unreimbursed Partner Expenses

[bk1]

I've gone through the process of entering my unreimbursed partnership expenses in the K-1 interview, but they do not show up on Schedule E.  What am I doing wrong?  Many thanks.

[Carl]

Where precisely, on what line of the SCH E included in your personal 1040 return are you expecting this amount to appear?

I'm thinking that you are claiming on the SCH E that which is not on the K-1.

[bk1]

Thanks for your response.  According to IRS Schedule E instructions, unreimbursed partnership expenses (UPE) should be reflected in a separate line on line 28 of Schedule E and be denominated something like "UPE - XYZ LLP," with the expense amount in column H.  TT asks for UPE information, but does not actually list the UPE on schedule E as set forth in the instructions.  See page 10 on this document https://www.irs.gov/pub/irs-pdf/i1040se.pdf.  You can accomplish this by creating a separate, "dummy" K-1 named "UPE . . ." with the amount of the UPE as a loss, but it doesn't seem like you should have to do that.

So, am I missing something in TT to cause this to happen correctly?

[Carl]

Column H? Are you sure on that? I would expect that to be a column F figure. So bear with me while this "armchair CPA' (who isn't qualified as such by any stretch of the imagination) asks the question:

How is it you are able to claim a non-passive loss or expense, on an activity that produces passive income? Was the property sold in 2017 maybe?

Meanwhile, I'm conferring with others because this may have just got to deep for me.

[Carl]

I'm not sure I got this right. But I "think" I do. Basically, the way the program works, your UPE are handled separately from the rental stuff. So you have to basically make a 2nd K-1 entry that only reflects the UPE.

As I understand it, the program can not deal with passive and non-passive activity on the same K-1. So you enter that same K-1 twice. The first entry will show all except the UPE. The 2nd entry will show "only" the UPE.

If there are others reading this thread more familiar with this, by all means please jump in.