Partner claiming deductions outside partnership?

[edrakin]

I'm working with a new client to prepare a 1040 on extension. He has only one income item: a K-1 generated by an LLC. It is a consulting business taxed as a partnership. It shows $315k of income for 2022. 

Other than being a partner of his firm, the client has no other business interests or activities. The client hands me a list of deductions that total $27k. They include things like mileage, a laptop, business travel, professional memberships, and software subscriptions. The client says all these expenses were incurred in connection with the partnership's business, but that the partnership did not pay for these items or reimburse him for these items. In essence, the firm gives partners a $10k budget for these things, and the partners pay personally to the extent they exceed that amount. Here, instead of having the firm the expenses and reduce the client's draw, the client simply started paying these expenses personally after he reached the firm's $10k limit. He now seeks to deduct those expenses he paid. 

The partnership agreement says nothing about any of this. The partnership agreement appointed a management committee to make decisions, and that committee imposed the $10k cap at a later date by way of an email announcing the policy. 

Can my client itemize and deduct these expenses, assuming they were ordinary and necessary for his profession and the partnership did not pay the expenses or reimburse the client?

[TaxGuyBill]

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@edrakin wrote:

The partnership agreement appointed a management committee to make decisions, and that committee imposed the $10k cap at a later date by way of an email announcing the policy.

In opinion, yes, that qualifies as UPE.  The Partnership Agreement indirectly says it will pay $10,000 of expenses, therefore requiring the Partners to pay for any excess costs.