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Loren has ordinary and necessary unreimbursed partnership expenses (UPEs) of $1,000. His partnership agreement has a reimbursement policy and will pay for the expenses with prior approval. He would rather deduct them on his tax return because the partnership had a difficult year, so he did not seek approval before making the purchases. Loren can: Deduct the UPEs on his tax return, because they have not been reimbursed by the partnership. Deduct the UPEs on his personal tax return, because the expenses are ordinary and necessary. Not deduct the UPEs on his tax return, because he did not get prior approval for the purchases. Not deduct the UPEs on his tax return, because the partnership agreement has a reimbursement policy.

Sagot :

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