Partnership Question

[TaxmannEA]

I've just been given a partnership return for a new business that started in 2020. Because of Covid, they were unable to do any business in 2020. They have expenses such as rent and utilities, but no revenue. They do have revenue in 2021. 

Do i need to file a return for 2020, or should I write off the expenses as start-up costs and amortize starting in 2021 ? I've not encountered this situation before. 

[Lynn EA USTCP in Louisiana]

Despite no income, there are expenses.  Yes, a partnership return should be filed for calendar year 2020.

[TaxmannEA]

Thanks Lynn. I had a mental block on this.

[Lee B]

While I agree that a PTS Return should be filed, depending on the circumstances, the expenses could be start up expenses or be deductible expenses.

 

[Lion EA]

Was the partnership actually open for biz, available to do what it's in biz to do? Or, still getting it's location ready or certificates applied for or other pre-opening requirements?

[DANRVAN]

4 hours ago, Lynn EA USTCP in Louisiana said:

Despite no income, there are expenses.  Yes, a partnership return should be filed for calendar year 2020

And NOL carry forward from operating expenses from the day business opened.

[TaxmannEA]

The business was open and available in March. It had to close down due to the Covid shutdowns. They deal with parties and other gatherings which did not happen in 2020. They are doing some business this year.