Richard Ratliff is correct in his analysis and explanation. No change of accounting method is required for the individual partner to deduct IDC vs amortizing IDC over 60 months. ------------------------------ [Rick] Allen CPA Henry & Peters PC Tyler ...
Just to add: I filed a final 1065 for a group of (20). The partnership never had any activity & the final return was all -0-s. What I received was a $28k penalty for late filing.....................However, late filing penalties for a defunct business ...
Hi Stephanie, Your client can deduct the allowable disallowed business interest expense from a prior year, even after divesting from the partnership in 2022. Report it on Form 8990 (Line 30) and deduct it on Schedule E under the same activity ...