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QBI and Unreimbursed Partnership Expenses

Level 1

Does anyone have any clarity on how to handle unreimbursed partnership expenses and the QBI?  The issue is the K-1 giives you the QBI number, you then deduct unreimbursed partnership expenses against this, and the program does not take this into consideration to reduce the QBI deduction.  The IRS at this point has chosen not to address this issue.  Seems like an awfully big loophole that one could easily take advantage of.  At some point if the IRS addresses this and catches on to what they have ignored there will be a correction of this and this will leave a whole lot of us who may have filed returns with this circumstance doing amendments to correct the issue.  You may want to hold off on filing these type of returns at this point or maybe not.

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1 Comment 1
Level 3

Seems like folks are reducing QBI by UPE  https://www.taxprotalk.com/forums/viewtopic.php?f=8&t=14058


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