Can you deduct expenses from my k-1 income ?

If you are reporting partnership K-1 income (loss), you may deduct unreimbursed ordinary and necessary partnership expenses that you paid on behalf of the partnership if you were required to pay these expenses under the partnership agreement.

IRS Instructions for Schedule E states:

Unreimbursed Partnership Expenses

You can deduct unreimbursed ordinary and necessary partnership expenses you paid on behalf of the partnership on Schedule E if you were required to pay these expenses under the partnership agreement. You can only deduct unreimbursed expenses on Schedule E that are trade or business expenses under section 162. Don't report unreimbursed partnership expenses separately if the expenses are from a passive activity and you are required to file Form 8582; otherwise, do the following.

• Enter unreimbursed partnership expenses from nonpassive activities on a separate line in column (i) of line 28. Do not combine these expenses with, or net them against, any other amounts from the partnership.
• If the expenses are from a passive activity and you are not required to file Form 8582, enter the expenses related to a passive activity on a separate line in column (g) of line 28. Do not combine these expenses with, or net them against, any other amounts from the partnership.
• Enter “UPE” in column (a) of the same line.

At the screen Describe the Partnership, select I am required to pay supplemental business expenses on behalf of this partnership for which I am not reimbursed.