Do not offset ordinary losses against ordinary income. Instead, include the income on line 10. If the amount entered is from more than one partnership, identify the amount from each partnership. Also see Special rules below for limits on certain other deductions. Any amount that is allocable to a class of exempt income.
Special rules apply to the following expenses.
Travel, meals, and entertainment. Subject to limitations and restrictions discussed below, a cooperative can deduct ordinary and necessary travel, meals, and entertainment expenses paid or incurred in its trade or business. Also, special rules apply to deductions for gifts, skybox rentals, luxury water travel, convention expenses, and entertainment tickets. For details, see section 274 and Pub. Meals and entertainment.