Answered: Does UPE unreimbursed partnership expenses decrease QBI deduction?

Yvonne · ‎03-14-2019

My client is one of member in partnership and has 20000 K1 earning from partnership. And she has 5000 unimbursed partner expenses claimed under UPE. The software did not take consideration of this 5000 when calculating QBI, therefore the QBI is 20% of 20000 is 4000. Is this correct?

And does this 5000 UPE subject to social security tax too? The partner is considerred as general partner in partnership. But the software only count the 15000 subject to social security tax. Is this correct?

Thank you!

IntuitCharlene · ‎03-14-2019

Great Question! It actually looks like we had someone else ask the same question during the Tax Reform Session.

https://proconnect.intuit.com/community/Tax-Reform-AMA/UPE-amp-QBI-in-Proseries/m-p/1553#M177

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IntuitCharlene · ‎03-14-2019

Great Question! It actually looks like we had someone else ask the same question during the Tax Reform Session.

https://proconnect.intuit.com/community/Tax-Reform-AMA/UPE-amp-QBI-in-Proseries/m-p/1553#M177

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Accept as solution"

Does UPE unreimbursed partnership expenses decrease QBI deduction?

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