Venue Rental and Form 1065

[NumbersHurtMyHead]

We are an event and party planning/promotion business (i.e., a business that provides services, no COGS or inventory) organized as a multi-member LLC. We rent venues (e.g., bars, nightclubs) to hold dance parties with DJs. Customers purchase tickets to these events or the "opportunity to dance" as the Department of Revenue in our state calls it.

It is an ordinary and necessary expense for us to pay our venues to rent their space. This can range from a few hundred dollars to several thousand for a given event. We record the payment as "Venue Rental" on our books as an expense. Should these amounts be recorded on Line 13 - Rent on Form 1065 or in Line 20 - Other deductions? The payment is referred to as rent in the contracts and our books, but I'm aware Line 13 is most often used for office space rent, which is not the case here. The IRS Form 1065 Line 13 instructions say "Enter rent paid on business property used in a trade or business activity." Our payments and their purpose meet that definition, making Line 13 seem appropriate. 

Which line is more accurate for this scenario or does it not matter?

[Anonymous_ · Accepted solution]

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@NumbersHurtMyHead wrote:

Which line is more accurate for this scenario or does it not matter?

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Frankly, it does not really matter since the expense (rent) is going to be deducted either way.

However, it might be more appropriate to use Line 20 (Other deductions) since you can specify the precise nature of the rental expense in your case; and that would serve to separate it from, for example, the rental of office space for your LLC.