Question

My partnership Schedule K-1 shows a small amount for non-deductible expenses. Can I report these non-deductible expenses on my personal return?

Answer

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.

Related Topics

Related Resources

A Parents Guide to Claiming Children on Taxes

Learn how claiming children on your taxes will impact your federal tax return with advice from the tax experts at H&R Block.

Where’s my refund – Georgia?

Looking for more information about your Georgia refund? Find out details on how to check your refund status, who to contact, and more from H&R Block.

Can A Non-Citizen Claim the Standard Deduction?

Learn whether a noncitizen can claim the standard deduction tax credit with advice from the tax experts at H&R Block.

Claiming Dependent Credit For A Disabled Spouse

Can you apply for a dependent care credit if you have a disabled spouse? Learn more from the tax experts at H&R Block.