My partnership Schedule K-1 shows a small amount for non-deductible expenses. Can I report these non-deductible expenses on my personal return?
You can’t deduct the non-deductible expenses paid or incurred by the partnership on your personal return. These non-deductible expenses are reported on Schedule K-1, Box 18 with Code C. Instead, you should decrease the adjusted basis of your interest in the partnership by this amount.
You also don’t have to include in your income amounts of tax-exempt income shown in Box 18 with Code B. Instead, increase the adjusted basis of your interest in the partnership by the amount shown.
Learn how to deduct student loan interest with H&R Block. Get information about qualified education expenses and see if a student loan tax deduction applies to you.
Tax preparers can have various designation and specialties. Learn how different types of tax preparers at H&R Block can help you in person or virtually.
What happens to your taxes after marriage? Learn how marriage can lead to changes in tax filing and returns at H&R Block.
Trying to determine the cost of tax preparation or H&R Block’s prices? Find out why there is no one-size-fits-all answer when it comes to tax prep.