06/12/2026
💡 **Partners: Are you leaving money on the table at tax time?**
If you are a partner in a medical practice, law firm, or consulting firm, chances are you pay for some business expenses out of your own pocket — client meals, mileage to meetings, professional dues, continuing education, even a home office.
Good news: those unreimbursed partner expenses (UPE) may be deductible on your personal return. Here is what you need to know 👇
✅ **The golden rule:** The expense must be one your partnership agreement (or firm policy) expects YOU to cover. If the firm would have reimbursed you, you cannot deduct it.
✅ **Where it goes:** Schedule E, Line 28 — with UPE noted. Bonus: it also reduces your self-employment tax.
✅ **Home office means bigger savings.** A qualifying home office can turn your commute into deductible business mileage and saves you on federal, self-employment, AND state tax.
⚠️ **Do not get caught:** One law firm partner lost his entire deduction in court because the firm WOULD have reimbursed him — and he could not prove his expenses. Documentation matters.
📋 **Best move:** Put a written firm policy in place spelling out exactly what is and is not reimbursed. It protects every partner if the IRS comes knocking.
Questions about whether your out-of-pocket costs qualify? Send us a message — we are happy to help. 📩
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