Mar
I paid into a partnership in 2007 and made a few thousand dollars. But I didn’t get the Schedule K until Late in 2008. So I could not deduct any business expenses, nor could I claim any income becasue I really and truelly didn’t receive the Schedule k-1 until after my taxes. If I could have, then I would have been able to deduct my business expenses and had a negative figure. The partnership is now defunct as most everyone loast money….. Can I deduct any of this for 2008 taxes under the current circumstances that I have mentioned
Answer:
NO, you can not deduct the 2007 Schedule K loss on 2008 tax return
BUT
you can and should amend your 2007 return to show this.
Answer:
I'm surprised you haven't gotten your CP2000 for 2007 already. The IRS computer is going to add in the income for the partnership and recalculate your tax bill.
You also can't deduct your expenses on the schedule SE, unless your WRITTEN partnership agreements states that you will cover miscellaneous expenses out of your own pocket. Without that clause, it's the Partnership's expense (and deductible only on the 1065) and your paying is simply more of an investment in the partnership.