Unincorporated partnership

[Belgarath]

Going in circles on the tax forms. We've been having a little conversation. Suppose you have an unincorporated partnership. Let's make it easier - no common law employees. No partnership contribution to the Profit Sharing account. A partner has income, assuming all other income/expenses have been taken into account other than the deferral, of $100,000. Partner defers $15,000.

1. It appears that this deferral would be listed on Line 13 of the K-1. Yes or no?

2. Does this reduce the K-1 income to $85,000 as reported on the Schedule E which is used on Line 17 of the 1040, or does it remain at $100,000?

3. When completing the 1040, is the deferral listed on Line 28? Yes or no? (This will depend upon the answer to #2 above, since you obviously wouldn't deduct it twice)

Any other thoughts/observations?

Thanks!

[Bird]

I'm a tpa, not a CPA, but I say:

1. It appears that this deferral would be listed on Line 13 of the K-1. Yes or no?

no

2. Does this reduce the K-1 income to $85,000 as reported on the Schedule E which is used on Line 17 of the 1040, or does it remain at $100,000?

no

3. When completing the 1040, is the deferral listed on Line 28? Yes or no? (This will depend upon the answer to #2 above, since you obviously wouldn't deduct it twice)

yes

[Belgarath]

Thanks Bird. Precisely the same answers I came up with, but the forms/instructions are sufficiently confusing so that I started to wonder if I was missing something crucial.